Congress seeks that expenses for environmental damage do not have access to tax benefits

After Repsol spilled nearly 11,000 barrels of oil in the Ventanilla Sea on January 15, Congress proposes tightening the measures so that companies that cause environmental damage cannot access tax benefits, such as the reduction in Tax. Income Tax (IR), derived from remediation expenses.

A first draft law of the Peru Libre caucus seeks modify article 44 of the Single Ordered Text (TUO) of the Income Tax Law in order to establish as non-deductible the payments incurred in the repair of environmental damage.

The proposal of the pro-government group has the objective of including, in the section C of article 44 of the referred rule, that the fines and “expenses arising from compliance with the corrective measures ordered by the competent environmental entity”.

Likewise, it proposes that a section be added where it is specified that the “compensation for environmental damageto health, to the rights of indigenous peoples or others that affect the public interest”.

Initiative to ensure environmental responsibility

The congressmen of Together for Peru also presented a bill to prohibit the deductibility of third category income for expenses arising from this same cause.

In this way they seek to guarantee “the application of the principles of internalization of environmental costs, environmental responsibility and the duty of prevention”.

Together for Peru’s proposal is similar to its counterpart from the ruling caucus, it only differs from this one because proposes the addition of two subparagraphs in article 44 of the TUO of the Income Tax Law.

Thus, he expects the first literal to specify that they are not deductible “expenses for compliance with corrective measures imposed by the competent environmental authority”.

While the second states that “compensation from court orders and extrajudicial transactions for environmental damage that affects ecosystems, wild flora and fauna, health, personal integrity, the territory of indigenous peoples or other fundamental rights are not discountable.” ”.