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Readjustment to agrarian law announced following business request

Readjustment to agrarian law announced following business request

The agrarian promotion law (Law 27360), created at the end of the Alberto Fujimori as a temporary measure, It was in force until the end of 2020 and was repealed due to social rejectionespecially from agro-export workers who, for years, demanded salary improvements considering the boom and the tax facilities that this norm – also colloquially called the Chlimper law – gave companies.

Former President Francisco Sagasti promulgated a law sent from Congress, which established that agro-export labor participate in 5% of companies’ profits, and progressively, this would rise to 10% only in 2027; in addition to receiving the CTS, bonuses, a special bonus of 30% of the basic remuneration and vacations, mainly.

Meanwhile, companies were no longer going to enjoy forever paying just 15% of the Income Tax, but rather paying 29.5% as applies to the rest, although this ratio was going to be reached gradually in 2028.

Do you want to ingratiate yourself?

Before CADE, the Minister of Economy, Alex Contreras, recognized that the repeal of the Chlimper law “was disastrous for the agro-export sector” and generated “structural damage” that limited its capabilities, therefore, the management of Dina Boluarte was going to propose “some regulatory changes” for this activity.

Even in labor matters, he said that the 6% contribution that the employer must make to Essalud on the worker’s remuneration will be maintained until 2025; According to the law signed by Sagasti, in some companies, the rate for this year should be 8% and 9% by 2028.

Already at the Cadet convention, the president of the Council of Ministers, Alberto Otarolaannounced that they will bet on a package of tax incentives to “boost investment and employment” in key sectors such as agro-exports.

And, yesterday, the Minister of Agrarian Development and Irrigation, Jennifer Contreras, maintained that as a State they must be facilitators to reach new markets, for which they will “unravel public management” to shorten deadlines and, in relation to the newly conceived agrarian law, have signed an agreement with the Central Reserve Bank (BCRP) to evaluate its impact, and, as a result, promote changes.

The ministerial announcements come in a context where the agro-export sector, in the voice of Gabriel Amaro, from the Association of Agricultural Producer Guilds of Peru (AGAP), considers that the regulatory changes three years ago did not benefit the producer and were prepared with a bias ideological, populist and political.

Numbers to compare

The head of Midagri recalled in her presentation that the agro-export boom of the last 20 years allowed us to go from US$758 million to US$10,421 million in 2022, positioning itself as the second foreign currency generating sector and enjoying an average annual growth rate of 12%. Even with the law criticized by companies, the figures in this area did not stop rising, according to official figures.

Figures

Agro-exporters pay 15% in IR. The general is 29.5%.

S/533 was the average income of an employee without a contract.

Reactions

Jennifer Contreras, Minister of Agrarian Development and Irrigation

“We need an alliance with you (private) who recognize the weaknesses of (state) entities. The agrarian promotion law that was repealed allowed growth in agro-exports.”

Gabriel Amaro, president of AGAP

“In the 90s, the bankrupt country was fixed and in 2000 an agricultural promotion law was created that was repealed in 2020 by an agricultural law that has nothing to do with the agricultural producer.”

Source: Larepublica

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