Peru's Central Bank President Julio Velarde estimates the income tax reduction impact on both companies and natural persons will boost the country’s gross domestic product (GDP) by around 0.8 percentage points.
A bunch of measures launched by the executive branch last year will also contribute to an increase of the GDP growth.
However, Velarde stated the government should aim to bolster public investment, since this has a more important impact on the national output.
“The priority here is to recover the public investment and 'reactivate' concessions that have been inactive due to different factors. This is the single thing that would impact the GDP the most,” he added.
(END) RGP/JJN/RMB
Published: 1/24/2015