On June 8, the Economy Commission approved an opinion that reduces the payment of the general sales tax (IGV) for mypes related to tourism and restaurants. This project is still waiting to be debated in the plenary session of Congress.
This proposal provides that hotel businesses, restaurants, tourist accommodation, catering and food concessionaires pay 8% VAT, and not the 18% to which they are currently subject. The project seeks to reactivate this sector of the economy, in the sense of “making survival viable and avoiding the closure of these activities.”
Thus, some 100,000 tourism and restaurant mypes would benefit if this rule is approved, The president of the National Chamber of Tourism of Peru (Canatur), Carlos Canales, told La República.
“The project understands the problem. It helps to partially resolve the serious situation in which the tourism industry finds itself,” he added.
For her part, the president of the Peruvian Association of Hotels, Restaurants and Related (Now Peru), Blanca Chávez, indicated that approving this project “would be the best thing to raise not only restaurants, but the tourism sector in general.”
No major impact on collection
Although it might be thought that a rule of this type would affect tax collection, the explanatory statement of the initial project indicates that the tourism sector contributes only 1.6% of the entire national VAT collection. “Practically, they do not generate a high impact on collection,” said tax attorney Miguel Carrillo, for which he described the measure as “correct.”
“The Congress of the republic is looking for a balance point so as not to affect the fiscal box. That 8% of IGV is the one that would avoid looking for IGV refunds at the end of the year”, Canals narrowed it down.
Benefits. The advantage of limiting VAT to 8% is that the final price for visitors would be reduced. “If prices are reduced, it will be more attractive for national tourists and thus we can double domestic tourism,” said Canales.