Peru | Tax Reform?

Summary

The government's request to delegate legislative powers on tax matters has generated controversy. The proposed proposals are far from being a comprehensive reform that allows for the equitable and efficient distribution of the effort that we must make as a society to bear the costs of the pandemic.

Key points

• Key points:
• On the one hand, it is perceived as an increase in taxes on taxpayers who already have a heavy tax burden but who receive almost no public compensation.
• On the other, there are those who consider that the proposed measures constitute "a reform" to increase the country's tax pressure that will allow a better provision of public goods and services for citizens.
• The issue is when and how. Regarding the first, today it is difficult to aggressively increase taxes because it would affect the economic recovery.
• On how, it is important that tax measures do not distort the incentives to produce, invest, create jobs and save.

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