What should be prioritized in the tax reform?

Efficiency and equity

Miriam Yepes, representative of the Ministry of Economy

The purpose of the delegation of tax powers is to strengthen the tax situation. It seeks to increase collection under criteria of efficiency and equity, advance in the formalization and expansion of the tax base, combat evasion and avoidance, reduce inequities in the tax system and promote private investment.

Only 4 of the 40 measures imply an increase in tax rates for sectors that already pay taxes. These are focused; that is, it will only apply to people with higher incomes or to economic sectors that currently present extraordinary profits.

No increase in fees

Carlos Casas, former Deputy Minister of Economy

I agree that there are a number of inequities. For example where those who receive capital gains actually pay less compared to other countries. There I could subscribe that there is this increase, but the moment is not the most appropriate. And it must be borne in mind that those who develop investment are precisely the people with the greatest assets.

We have a high evasion and that we should definitely try to reduce. If the tax system were to change without changing the rates of some taxes, collection could be increased by doing a better inspection.

Tax wealth

Susana Ruiz, Head of Tax Justice at OXFAM

One of the most important elements is that whoever pays the cost of the pandemic really fall this time on those who have been less taxed in the past, who have suffered less from the impact of the pandemic.

It must be achieved that there is an axis of taxation of large corporations that responds to business models in the 21st century such as the digital economy, in addition to greater progressivity that breaks the taboos of wealth and the lack of taxation of work income of the highest levels recognized by the IMF, ECLAC or the administration of Biden.

The need for reform

César Flores, spokesman for Fiscal Justice of Peru

Peru is one of the countries that are at the bottom in tax collection, which historically oscillates between 14% and 15% of GDP. The average for the region is 23% and for developed OECD countries it is 35%.

According to a study by the Fiscal Council for the period 2010-2016, –and unlike Mexico, Chile and Colombia– The only country in the Pacific Alliance that did not carry out a tax reform in this period of the price supercycle was Peru. The argument was that investment had to be encouraged. If we go from 14.5% to 19.6% we could cover the demand for education and health. We would still be below the average of Latin America.