Peru’s Finance Minister Alonso Segura last night announced the reduction of personal income tax for low-income individuals in the fourth and fifth categories in a bid to help increase their capacity for consumption.
“This is the first time a clear decision on tax reduction is taken in the country. Tax rates in Peru are higher than those across the region. We want to put more money in the people’s pockets,” the government official stated.
He said an anticipated recovery mechanism of general sales tax (IGV) is being developed to acquire equipment for the microenterprise sector; such devices account for more than 50% of gross domestic product (GDP).
Mr. Segura added, “This will make it easier to improve the productive capacity and will result in increased income over the coming years.”
In addition, the Finance minister pointed out that the cooperative income tax will drop from 30% to 28%. This change will be effective starting January 1st next year and shall occur gradually through 2019.
(END) WR/ASH/RMB/MVB
Published: 11/20/2014