Join the conversation:

Peru to Cut Income and Profit Taxes to Bolster Fiscal Stimulus

Peru to Cut Income and Profit Taxes to Bolster Fiscal Stimulus

Posted by Juan Gavasa on November 20, 2014

The government will propose legislation to reduce the corporate tax rate to 28 percent from 30 percent, according to a statement posted on the website of the Cabinet Chief’s office late yesterday. The government plans to cut the lowest income tax band for workers to 8 percent from 15 percent starting Jan. 1, Finance Minister Alonso Segura told Radio Programas today.

Peru is expanding efforts to revive an economy the central bank forecasts will expand 3.1 percent this year, the slowest pace since 2009, after a slump in revenue from copper and gold exports. The government authorized bonuses and pay increases for government workers and increased outlays on public works in recent months as part of measures to boost growth.

“It’s a very, very aggressive proposal and very audacious,” Segura said. “We’re thinking outside the box to ensure the economy grows close to 6 percent toward the end of 2015.”

Facebook comments



Monthly newsletter featuring articles hand picked by our country managers from the best content across PanamericanWorld.



Monthly newsletter featuring articles hand picked by our country managers from the best content across the Caribbean Region on PanamericanWorld.

PANAMERICANWORLD COUNTRIES