Congressional farra affected tax revenues

With S/11,721 million, March collection recorded a decline of 25%, its lowest level for that month since 2021, when it hit rock bottom due to lower activity in the pandemic.

In March, Income Tax plummeted 32.6%, after recording income of S/6,182 million, compared to S/8,905 million in the same month of 2023. However, it maintains one of the best records in its history, after S/10,690 million were raised in March 2022.

The VAT also weighed down. Revenues reached S/6,200 million, 13% less than S/6,908 million a year ago. The story with the Selective Consumption Tax was no different (see graph).

Sunat refers to “lower payments at the level of customs taxes” due to low imports and a lower average exchange rate. This can be verified because, while the internal VAT grew from S/3,800 to S/3,819 million year-on-year, the VAT on imports plummeted from S/3,107 to S/2,381 million.

Lower VAT income because today you pay less to import a similar volume than a year ago, according to Juan Carlos Odar, director of Phase Consultores. A complicated situation, since the fall also triggered the decline in inflation. In exchange for? That the State has less income.

But regarding the decrease in fourth-class income, tax expert Miguel Carrillo adds the delay by Sunat in the publication of Virtual Form No. 709 of the Annual Income – Natural Person, “an error without justification, except to harm those with positive balance”.

So many times the Congress

Sunat also refers to laws issued by Congress last year, despite questions from the Ministry of Economy and Finance (MEF).

Among them, the postponement of the payment and declaration of IR for individuals and mypes, which occurs between March and April, but this year, by Law 31940, will occur in May-June. Then Law 31903, which released deductions for mypes; and Law 31962, which will double the interest to be returned by the State for taxes incorrectly collected from taxpayers, a perverse incentive to underreport.

The Executive is aware of this reality and seeks to capitulate. In the request for powers to Congress, Minister José Arista announced “a combination of administration and tax policy measures” to avoid exceeding the 1% deficit this year.

MEF asks for two things: tax new business models based on the digital economy, such as the Netflix tax; and approve its bill 6768, which simplifies the tax regimes and allows the General Regime to absorb the RER and Remype. But online betting houses are also in the spotlight.

“A rule will be proposed, modifying Law 31557, to regulate elements necessary for the application and collection of the tax on remote gaming and betting, to allow its declaration and obligation of subjects,” Arista said.

And, in addition to promoting investments and increasing the base to recover one point of the lost pressure and reach 15.5% this year, MEF assures that it will not put the country into debt and will maintain public debt at no more than 33.5% of the GDP in 2024, and 32.5% in 2026. It’s already been a quarter.

MEF: new contributors to collect

Mincetur estimates that, from the creation of a tax for online gambling, an annual collection of close to S/162 million will be achieved. Since this April, some 50 companies that provide this type of services in Peru began to contribute 12% of their net profits.

The Executive warns that Law 31962 will affect the Treasury’s income and will double the interest to be returned: S/280 million annually. Standard “incentivizes and rewards improper or excess payments attributable to faults or faults of the taxpayers themselves,” it states.

Reaction

Juan Carlos Odar, Director. Phase Consultores

“You have a lower value of imports due to the price effect. “If you look at inputs such as oil and food, they are at lower levels than in 2023, but it is not necessarily that less volume has been imported.”