They seek to eliminate the Financial Transactions Tax

Congressman Carlos Alva Rojas proposes eliminating the Financial Transaction Tax (ITF). In recent years, other regulations have been approved that replace its functions, which made the ITF not only unnecessary, but also harming savers, the parliamentarian maintains.

The ITF came into force in 2004, after the approval of Law 28194, Law for the fight against tax evasion and for the formalization of the economy. It was valid for one year with a rate of 0.1%. Its objective was to tax operations in the financial system between people and companies to provide said information to Sunat so that it can carry out the inspection actions that correspond to it in more detail.

However, 18 years later, the ITF is still in force. Over time, this tax has been decreasing and since 2010 it has been at 0.05%.

For the non-grouped legislator, Alva Rojas, the usefulness of the ITF has been lost because in 2018 Legislative Decree No. 1434 was promulgated, which modifies Law 26702, with the objective of Sunat receiving financial information from the same companies in the system, to combat tax evasion and avoidance.

“The declaration by banking institutions is more efficient than the ITF, because it is more detailed, the balances, information of the account holder, performance, higher amounts of the bank accounts, to name a few details. In addition, establishes a simplified process so that Sunat can request the lifting of banking secrecy in days”is maintained in the document.

Furthermore, it is pointed out that the measure would be unconstitutional, since it has a confiscatory effect, when the Constitution states that “the State, when exercising tax power, must respect the principles of reserve of the law, and those of equality and respect of the fundamental rights of the person. No tax shall be confiscatory“.

The proposal was presented on Friday, December 1, and must be analyzed by the congressional committees before going to the plenary session for debate and voting.