Navigation
Suscribe
Menu Search Facebook Twitter
Search Close
Menu ALL SECTIONS
  • Capital Coahuila
  • Capital Hidalgo
  • Capital Jalisco
  • Capital Morelos
  • Capital Oaxaca
  • Capital Puebla
  • Capital Quintana Roo
  • Capital Querétaro
  • Capital Veracruz
  • Capital México
  • Capital Michoacán
  • Capital Mujer
  • Reporte Índigo
  • Estadio Deportes
  • The News
  • Efekto
  • Diario DF
  • Capital Edo. de Méx.
  • Green TV
  • Revista Cambio
Radio Capital
Pirata FM
Capital Máxima
Capital FM
Digital
Prensa
Radio
TV
X
Newsletter
Facebook Twitter
X Welcome! Subscribe to our newsletter and receive news, data, statistical and exclusive promotions for subscribers
World

Peru Government to Propose Higher Corporate Taxes

In 2014, the corporate income tax rate was 30 percent

View of a street of the commercial district of San Isidro in Lima, photo: Reuters/Mariana Bazo
By Reuters Whatsapp Twitter Facebook Share
1 year ago

Peru’s government will present a bill to raise taxes on corporate profits in order to lower sales taxes and boost the economy, Finance Minister Alfredo Thorne said on Wednesday.

The initiative is part of a package of measures that newly sworn-in President Pedro Pablo Kuczynski’s government plans to propose to an opposition-dominated Congress.

Taxes on corporate profit are currently at 27 percent in the minerals producer and, according to a law signed by former President Ollanta Humala, should fall gradually to 26 percent in 2019.

In 2014, the corporate income tax rate was 30 percent.

“We are asking … to increase the income tax,” Thorne told reporters after a Cabinet meeting.

He said the increased revenue could finance part of a one percentage-point cut in sales taxes in 2017, another measure Kuczynski’s government will propose. That tax is currently 18 percent.

Kuczynski, a centrist 77-year-old former investment banker who took office earlier this month, says lower sales taxes are central to his plans to modernize Peru by encouraging small businesses to pay taxes. But lawmakers with the right-wing party of his defeated rival, Keiko Fujimori, have slammed the reform as a drain on government revenues.

Thorne also said the measures would help increase the number of tax contributors by bringing small companies into the formal economy.

“The richest pay more, and that way we reduce taxes on the middle class,” he said.

“We are going to make it so that the economy grows based on an increase in consumption and investment in small and medium-sized companies,” he said.

Comments Whatsapp Twitter Facebook Share
More From The News
World

Russia: Relations with US Poor Over 'Rus ...

3 hours ago
Business

Not Home? Walmart Wants to Walk in and S ...

4 hours ago
Living

Post-Quake Threats: How to Avoid Them

4 hours ago
World

Turkey says It Won't Accept Kurdish Inde ...

4 hours ago
Most Popular

Mexico Shocked By News: Girl Trapped in ...

By The Associated Press
Mexico

7.1 Magnitude Quake Kills 139 as Buildui ...

By The Associated Press
Mexico

Earthquake Death Toll Rises to 273

By Notimex
Mexico

Help Still Needed in Xochimilco

By The News
Mexico

The Woman Behind Cortes’ Sword

By Bob Schulman
Living