Commissions divided into empowering changes to the mining tax regime

The commissions of Economy and Constitution of the Congress of the republic They scheduled for today the debate of the prediction that delegates to the Executive Power the power to legislate in tax, fiscal, financial and economic reactivation matters.

However, despite the fact that the Executive has proposed an ambitious tax reform package, it would not be empowered on all points.

The Republic was able to access the predictions that will be discussed this morning and detected that there are six proposals that the Economic Commission considers not viable to grant them the powers, while in the Constitution there are nine points that have been excluded.

Those who exclude themselves

One of the Executive’s proposals that are not considered in both documents is related to rate adjustments in rental taxes and capital income (1st and 2nd category), which sought to reduce the gap that exists in relation to income. of work (between 8% and 30%).

In addition, they would not be given powers for the Government to raise the marginal rate of income tax for people with higher incomes (that exceed S / 300,000 per year).

You would also be denied reducing the maximum deduction limit above 20% of your declared income. Currently, the limit is 24 UIT, so it is allowed to deduct up to S / 105,600 for annual income of S / 528,000 and more.

For both committees of Parliament, these points are not feasible for the requested powers to be granted because a debate between the Executive and Legislative Power is necessary to improve the country’s tax structure, and its progressiveness, for which they consider that said proposals should be through bills for discussion.

Mining tax regime

A key point of the tax reform proposed by the Executive is the adjustment to the mining tax regime. However, both commissions have split positions.

And it is that while the Constitution Commission has proposed that the mining tax changes be given through Congress, the Economy Commission does consider granting it the powers to legislate in this matter.

Given this, sources from La República indicated that there is great interest for this point to be eliminated from the prediction of the Economic Commission.

On the other hand, congressmen from Peru Libre asked the president of the Constitution Commission, Patricia Juárez, to include in the prediction some points that were excluded.

By means of an official letter, they requested that the Executive be given powers so that it can make changes to the mining tax regime, raise the rate of capital income by up to 10% and increase the taxes to people who earn over S / 300,000 a year.

In the case of income from work, the proposal reaches only 0.25% of the population with the highest income, while that of capital income only the 1% with the highest income.

IMF supports adjustment in mining regime

It is important to mention that the International Monetary Fund (IMF), in its preliminary report, concluded that there is room to increase progressivity in the mining tax regime without affecting the competitiveness of the sector.

The international body maintains that Changes to the tax regime should focus on modifying the parameters of the royalty and the special mining tax (IEM).

Also, as part of the new parameterization of the royalty and the IEM, the IMF indicated that the number of tranches of the operating margin could be reduced to calculate the effective rates.

The word

Pedro Francke, Minister of Economy

“We already have a preliminary report from the IMF that says that Peru has a chance to increase taxes a bit in the mining sector while maintaining its competitiveness, and we can do it.”