Congress approved an initiative that also empowers the Banco de la Nación to offer loans to Peruvians abroad. MEF warns of “fiscal sacrifice” and that companies will not reduce the commission they charge for remittances.
By a large majority, the Congress of the Republic approved an opinion that modifies the scope of the VAT and ISC, in order to free the collection of commission taxes on remittance shipments to Peru.
The text – covered by PL 923/2021-CR and 5322/2022-CR – specifies that money transfer operations sent from abroad to our country will not be taxed, in order to generate a positive effect on the family economy. .
“It will generate a positive effect on family spending,” summarized César Revilla (Fuerza Popular), president of the Congressional Economy Commission.
According to the guidelines of the opinion—exonerated from the second vote— Companies capture up to 10% on transfers, so “200 dollars is very onerous” and there is no real impact on households who see this money as an extra for their expenses.
However, the Ministry of Economy and Finance (MEF) questions the parliamentary initiative, and alleges that any tax benefit “is a fiscal sacrifice” that limits the cash to invest in health, education and infrastructure, among others.
“The non-affection of the VAT is a measure that would not be reflected in a reduction in the service commission, since the fund transfer company could not deduct the VAT paid on the acquisitions incurred to provide the service, and must incorporate it into its cost structure,” the MEF noted.
In addition, the Banco de la Nación is empowered to open financial services such as loans to Peruvians abroad. The remittances they send will serve as backup when accessing one of these banking products. The MEF insists that the proposal contravenes the subsidiary role of the BN, which operates only where the private sector does not reach.
Source: Larepublica
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