Legislative powers granted to the Executive yesterday by Congress include a new tax system mainly focused on small and medium-sized enterprises (SMEs) formalization, Peru's Prime Minister Fernando Zavala affirmed today.
"We can see by analyzing the legislative powers that one of the most relevant topics refers to formalization," he stressed.
In this sense, the high-ranking official pointed out the process "has to be at SMEs' level."
Zavala highlighted the government's new taxation system aims to support small enterprises in the formalization process through proceedings and formats, as well as National Superintendency of Tax Administration (Sunat) fiscalization.
"We want to set up a new tax system that allows progressive formalization to emerging enterprises. We will create a new system where tax collection, whether as sales percentage or the Income Tax, provides a range of options," he assured.
According to the Cabinet Chief, the idea is that enterprises begin formalizing over their life and, most importantly, become part of the economic system.
"It is not about reactivation for large enterprises; it’s about having new systems allowing us to move forward," he expressed.
Paperwork simplification
The government official noted the Executive's formalization proposal includes other topics such as simplification of proceedings in general, and not only tax-related.
"There is too much red tape, both in ministries and at different government levels. SMEs have to go to a certain ministry, then to another with a different format, after that to a third one, and then to a local government in order to begin operations," he explained.
Thus, he expressed, the Executive's request also includes legislative powers to simplify proceedings.