The pandemic widened the gaps between rich and poor, to the point that Peru leads the list of the most unequal countries in the world, according to the World Inequality Database (WID).
And, in a market that required families to get into debt for life or exhaust their retirement money to be able to afford an ICU bed or an oxygen cylinder —added to the fact that more than 30% would have fallen into poverty—, it is urgent to shorten the differences through a tax reform, according to the International Monetary Fund (IMF).
Nigel Chalk, deputy director of the IMF’s Western Hemisphere Department, recommended that Latin American governments be “more progressive” in their tax systems, since “the rich can avoid paying taxes or not submit to them thanks to exceptions.” In his opinion, to mitigate the damage of inflation on the most vulnerable, “fiscal policies must be implemented that force the rich to pay their proportional part as part of the solution.”
There is margin in Peru, but…
There is no political will, both from Congress and from the government of Dina Boluarte, both with a marked inclination to the ultra-right, according to the executive coordinator of the Citizen Proposal Group, Epifanio Baca. The expert recalled the proposal of former Economy Minister Pedro Francke, who intended to tax more those who earn more than S/300,000 per year, but Congress denied this point in the tax reform.
“The complicated thing would also be the mechanism to apply it, if, for example, Roque Benavides pays more for his income or absolute wealth,” he told La República.
Where to aim? A first step, according to Baca, is to review the benefits that private universities and casinos receive, since there are strong lobbying interests behind their tax exemption.
In addition, Sunat must be strengthened in the fight against avoidance because some companies reduce their tax base by inflating costs or lowering income so that the profits, to which taxes are applied, are lower. “There is an anti-avoidance rule, but Sunat doesn’t do his job,” he said.
The PUCP professor José Távara coincides with the wealth tax, who recommends changing the proportion of the current regime: it is better to expand the tax burden on income and wealth, and reduce those oriented to IGV or ISC, which do not guarantee equity.
Távara is critical of the current economic model, and recalls that it is not enough just to look at macro growth to guarantee that the quality of life has improved for everyone.
The word
Epifanio Baca, Citizen Proposal
“It is a proposal that has been around for years, but with the current government it is impossible: an extreme right-wing coalition that rejects this plan to improve the tax scheme.”
The numbers
- S/12 billion a year were going to be collected if the tax on the rich in Peru had been approved, which was raised by former minister Francke.
- The richest 1% concentrate two thirds of global wealth. Almost double 99% of humanity, according to Oxfam.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
