MEF: Four executive programs seeking green light in Congress | Government of Peru economy

Ministry of Economy and Finance (MEF) noted that they believe four projects from Peru’s executive branch could receive the “green light” very soon. Congress of the Republic.

This is about Tax incentives for employment in textile companies, Creation of Canon Stabilization Fund And this State Purchase Act, which have already been sent to Parliament. About the fourth attempt Pension reformIt will be recommended to Congress by the end of September.

On the scheme promoted by the textile-garment sector, Contreras said the aim is to provide a faster depreciation regime so that investment can be deducted in less time.

The initiative envisages that companies employing one or two workers can claim income tax exemption for 2024.

“We have fixed it for one year, but it can be extended to three years. The first year, if you invest now, you bet in Peru, you deduct a higher percentage, that is 70%, in the second year 50% and in the third year 30%.“, pointed out in the Economic, Banking, Finance and Financial Intelligence Agency Congress of the Republic.

He noted that this move will help Peru increase employment and investment by taking advantage of its trade agreements with the United States and Europe. “We continue to see this industry as a potential source of employment and it will help in this difficult environment.” he announced.

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Regarding the quest to create a canon stabilization fund, the chairman of the MEF pointed out that it is essential to help regions when metal prices fall or when production is not recorded.

He cited as an example that no new projects entered Cajamarca, and that Yanacocha Sulfuros postponed its investment decision. Therefore, the districts of that region receive less tax, without which there are no resources for investment.

He recalled that last year the Las Pampas mining company was paralyzed for several weeks and this year it affected the canonical income of the Apurimac region. “Generally, many governments had revenue expectations in their budgets that did not materialize and are now halting investment projects.“, said.

“The proposition is that when metal prices are high, they are stored in a fund when prices or production fall, so that the impact is so smooth that the investment does not grow or fall too much. The money will be respected as it belongs to the region” he added.

read more: MEF: Canon Confirmation Does Not Change Fund Distribution Rule

The minister also explained that they are promoting a new state contract law as the current law is out of date.

“The Act (Works) we have creates a stop. A company that does not agree with some points comes, so it stops the project, and more than S/ 18,000 million jobs are paralyzed, it has to change.”, he mentioned.

In addition, the initiative allows quick resolution of emergencies, a preventive and transparent approach, the official said.