Yesterday, the International Monetary Fund (IMF) published its final statement on its mission in Peru and, as part of its conclusions, indicated that our country “urgently needs a pension reform”, as this would help reduce the risk of poverty. in the older adult population.
And it is that the withdrawals in the pension funds authorized between 2020 and 2021 -due to the pandemic- have increased the challenges of low coverage and adequacy of the pension system.
In this sense, the IMF suggested that for the pension reform there should be a broader contribution base and higher contribution rates.
tax matter
One point highlighted by the IMF is the efforts made by the authorities to address the tax compliance gap; however, despite this, tax collection in Peru has been relatively low compared to its regional peers.
In this sense, he pointed out that if Peru wishes to address key needs in education, health and social policies -including pensions- where there are significant gaps, continuous efforts will be required to improve tax collection, as well as to make adjustments in the policy. tax.
On this point, it is important to remember that the IMF, in a preliminary report on the fiscal tax regime, indicated that there was room to increase progressivity in the mining tax regime. Likewise, the final report of the international organization is still pending.
missing recovery
Regarding economic activity, the IMF notes that real GDP remains below its pre-pandemic trend, and labor force participation and total employment have not fully recovered. While poverty in 2021 would have closed above 2019 levels despite some improvements. The agency expects GDP growth of 3% for this year.
Source: Larepublica
Kingston is an accomplished author and journalist, known for his in-depth and engaging writing on sports. He currently works as a writer at 247 News Agency, where he has established himself as a respected voice in the sports industry.
