Ilich López about criticism of projects with high fiscal cost: “Numerically they are right, but at the expense of the social benefit”

Before initiating the second legislature, the president of the Economy Commission Ilich López spoke with this media on the projects of Congress that put public finances in check, according to the communications of the Fiscal Council and the Ministry of Economy and Finance of last year. And it is that they are pending resolution in Parliament the law that grants tax benefits to large agro -export companies, as well as the regulatory framework for the implementation of private special economic zones.

– What is the balance of the Congress Economy Commission during 2024?

-The work plan that we unanimously approved in the Commission has had three essential points: fighting crime through removing the incentives for “drop by drop” loans that were given through this so -called law against usury, approve the law that strengthens the Municipal Compensation Fund (Foncomún) and the other fundamental issue is the democratization of credit. This is also being achieved from the bills that are going to vote on the patrimonial strengthening of municipal boxes.

–The Fiscal Council warned that both the Executive and Congress introduced initiatives that increase public spending. Precisely, one of the questions is that the fiscal deficit closed 2024 by 3.6% of GDP and the goal set by the MEF in 2.8% was breached for the second consecutive year. What would you have to say before this criticism?

-To the gentlemen of the Fiscal Council, many of them former ministers, tell them to change their collection chip. Except for a former minister who dropped the IGV from 19% to 18%, all have pressed the formal. No one has promoted a clear, objective public policy that has relative success to expand the tax base. So, when they talk about the measures that do not contribute to the fiscal balance, they are right, but, at the expense of the social benefit, I cannot say that I am fine. For example, the CTS has increased by law to teachers, logically that will have a cost of part of the State. But, there is no balance in the position of the fiscal council with the social.

–How was the relationship you had with the previous Minister José Arista, who made public your criticisms of some bills such as expanding the reduction of IGV for hotels and tourism?

-Not only with the current minister, but the former ministers of the last 20 or 25 years, have gone against what Peru gives more income, which are their entrepreneurs: large, small, medium and microentrepreneurs. Then, when issues on IgV reduction are raised, they immediately turn to say that it is an anti -technical proposal. However, they do not care to expand the tax base, to improve the collection and to make greater formality in Peru.

–What do you think about the new Minister of Economy José Salardi?

-Mañana is going to meet a month and we are going to turn on your first candle to the Minister of Economy, Mr. Salardi. But, so far he does not know what to do in the face of the Ministry of Economy. For example, he stated that they will present a bill to improve this app process, which seems good to me, but says it will still be half a year. That is, they are not prepared to do what they announce.

–For this year, the MEF has updated the projections of economic growth to 4%, due to high metal prices, greater dynamism of public and private investment, as well as the control of inflation and a decrease in the fiscal deficit. Do you think there is an oversupply of the MEF or that it is an attainable figure?

-Yeah. However, that rate is insufficient for Peruvians. A fact that I always give: every year Peru needs 350,000 new jobs to use young people who enter the work age. What does this mean? That these positions are not going to add to the ones that already exist in the state as such, but through the revitalization of the economy. 60% of GDP that enters statistics are produced privately. Therefore, I put myself on the side of promoting formalization. And here comes my criticism: if very restrictive measures against the formal are still giving, they will go to informality. So, this 4% they are projecting, okay. But why not 5 or 6?

–We are a few days after starting the second legislature and we see that there are four projects of Retirement of the AFPs. In this regard, the MEF has indicated that it could generate damage to the pensions of the affiliates. Does this criticism coincide?

-I agree that these initiatives have been for emergency moments. By the way, the economic growth of 2024 has to do with these retreats because people have had liquidity and have been able to buy, which has generated dynamism. That stimulus has taken the pension systems, and that has not been right because you are removed the future for people who, from here to 20 or 30 years, will not have the same forces to work or a pension with which to cover that old age. So, when a proposal comes and I tell you with respect to my colleagues who have presented these initiatives, they are looking for ephemeral applause and do a lot of damage. I’m going to call them to make a great debate on how we can formalize Peru. These retreats do not improve the economy of Peruvians. Let’s not forget that only 5% of the economically active population are those who have formal work. And that 5% no longer has AFP funds and neither does CTS.

–Precisely, the president of the Labor and Social Security Commission, Elva Julón, has a project for workers diagnosed with terminal diseases or cancer to withdraw their CTS. How will it agree with it to direct the debate of these proposals?

-The CTS is unemployment insurance. When someone stops working and hooks a new job, he needs a small mattress for that search time. In that sense, the CTS cannot be denatured under any reason. However, I find the proposal in favor of those who have terminal diseases. We can make a guarantee regulation, in which that fund for specialized treatment can be used. You have to see the measures in exceptional cases, but without denaturing the background.

–In December of last year, Congress approved in first vote the opinion that creates the special tax and customs treatment for special economic zones. Do you think this proposal is a tax incentive or gift?

-What happens is that, when you want to look for criticism, these types of arguments come out without any livelihood. When we propose that taxes are not charged during the first 5 years and, gradually, the income tax reaches 15%, the people who criticize say that this percentage would be stopped being charged, but there is a basic and simple mathematics issue. How much are we paying for economic zones today? 0. There is no reasonable criticism, but stuck to an ideological dogma that has failed or a media dogma that tries to seek applause confusing people with that you are giving taxes. That is totally false.

–It is not in the Economy Commission, but on the agenda of the Plenary is the opinion of the Agrarian Promotion Law that reduces the income tax of companies to 15%. What do you think of this tax benefit to agro -exporters?

-Look, I am a president of the Economy Commission that I consider that taxes should be lowered in general for everything. So that it does not generate a sisma, more people must pay taxes. That is, the tax base must be expanded. Second, I consider that all sectors should have these incentives, not only tributary, but also in the democratization of credit. What I think is that these measures should be complemented with concrete issues. I agree that there is a favorable position for agro -export, as long as the technological theme is contributed, with the production chain of value towards micro and small entrepreneurs.

–On this issue, there is a change in MEF position, which previously warned tax damage of up to S/20,000 million and now the Salardi indicates that this rule will favor exports of the agricultural sector. What do you think of this MEF turn?

-I think that the MEF must change the collection chip that has been for 30 years. Ah, you do business, pay taxes. Perfect, but, you have to boost public policies that help formalization so that measures such as this will reduce collection are not going to reduce. I consider that a month after his office, it is good that he has pronounced in favor or that he has changed his position. However, without other complementary measures, it will not help.