This is how the ‘luxury taxi’ will work in Panama after a new government decree

Panama regulates transportation by apps with Executive Decree No. 10, which creates the Luxury Taxi (TL) and sets requirements for vehicles, drivers and supervision of the ATTT.

Platform transportation in Panama enters a new regulatory phase. An Executive Decree establishes the rules for the selective public service requested through digital applications and defines the scope under which these platforms may operate.

The measure, described in Executive Decree No. 10 of April 16, 2026states that it seeks to modernize the land transportation system and guarantee that the use of Information and Communication Technologies (ICT) is carried out in an “efficient” way, now under the direct supervision of the Land Transit and Transportation Authority (ATTT).

In general terms, the decree regulates the so-called “Luxury Taxi (TL)”, defined as a service that can be requested using digital tools and that has special rates paid electronically or in cash.

The regulations emphasize that This service will operate under the registration, control, supervision and supervision of the ATTT, positioning digital platforms as facilitating tools in the provision of the service.

Regarding vehicle requirements, the standard establishes comfort and safety standards. According to article 2 of the executive decree, the units must have air conditioning and seat belts, in addition to an age restriction: the vehicle cannot be more than seven years old at the time of starting the provision of this service.

Likewise, vehicles must carry a license plate and decal with the “TL” nomenclature, which clearly identifies them according to their work area.

As for drivers, the decree imposes strict suitability criteria. Article 3 requires, among other requirements, to be Panamanian and possess a type E-1 driver’s license. In addition, applicants must present a police record stating that they have not been criminally sanctioned in the last ten years, thus guaranteeing a security profile for system users.

Decree prohibits companies from managing vehicles

A key point of the regulation is the limitation imposed on technology companies in fleet management. The decree prohibits platforms from acquiring or managing vehicles directly, stating that these companies perform a strictly intermediary function.

In this way, the platforms will only be able to hire drivers and vehicles that have a valid Operation Certificate for the Luxury Taxi modality.

Regarding the service rate, the State maintains power over prices. Article 8 clarifies that the rate is a value duly regulated by the State, which will be set by the ATTT based on technical studies and cost structures that ensure competitiveness compared to other mobility options.

The user will have the option to pay both electronically and in cash.

This new legislation repeals the previous Executive Decree No. 331 of 2017 and seeks to correct legal loopholes previously pointed out by the Supreme Court of Justice. The central objective is to promote the inclusion of transportation in the digital era to mitigate inequality and ensure that these efforts are maintained in the future, adapting the service to the demands of users who demand greater comfort and technology.

Executive Decree No. 10 was signed this Thursday, April 16, 2026 by President José Raúl Mulino and came into force upon its promulgation.

However, a period of three months is granted for certain specific certification and endorsement requirements to be fully enforceable.

The mayor of the capital, Mayer Mizrachi, reacted to the issue and pointed out that this decree does not regulate the platform transportation system, but rather “punishes innovation.”

He indicated on his social network X that “instead of raising taxis to the level of Uber, they lower Uber to the level of taxis.” Given this resolution, Mayer indicated that they are making an app, which would be modernizing taxis, but did not give further details.

Yaritza Mojica

Society section journalist