Press Release

Peru: Extension until 2027 of the VAT return law for exploration in mining activity

Bnamericas Published: Wednesday, November 02, 2022
Peru: Extension until 2027 of the VAT return law for exploration in mining activity

This Congress of the Republic release was published using machine translation.

As of January 1 of next year and until December 31, 2027, the validity of the law that provides for the refund of the General Sales Tax (IGV) and the Municipal Promotion Tax, to the holders of the mining activity during the exploration phase, approved by a majority of the Commission of Economy, Banking, Finance and Financial Intelligence.

Along the same lines, the same measure was approved for the exploration of hydrocarbons, in order to promote this activity in the mining and hydrocarbons sector, to promote the development of new investment projects.

The approval of the initiative from the Executive Power was with 16 votes in favor, one against and four abstentions, in the working group led by congresswoman Rosangella Barbarán Reyes (FP).

Parliamentarians José Jerí Oré (SP) and Jorge Morante Figari (FP), expressed their agreement with an extension of the five-year extension proposed by the Executive Power and not three as the commission did in its prediction. Legislator Tania Ramírez García (FP) considered an opportunity to encourage investment in this sector and be attractive for exploration in mining and hydrocarbons.

Congressman Guido Bellido Ugarte (PL) asked for a greater evaluation of the issue, because the extensions have been taking place every time and it would be important to review the rules of tax benefits by which they will be subject only once, for a period of up to three years, but since 2006, it has been extended each time, for three years. A similar opinion was held by congressman Jorge Morante Figari (FP), who considered the possibility of coordinating with the Executive Power so that the rule is permanent and direct.

At another time, with 11 votes in favor, six against and four abstentions, the commission approved the draft opinion issued in legislative initiative No. 1137/2021-CR, which proposes the "Law of Sports Organizations dedicated to the practice of soccer”, authored by congressman José Jerí Oré (SP), who indicated that what is sought is that soccer clubs can develop sports infrastructure.

“This infrastructure is wanted to serve as a locomotive to pull other sports disciplines. Soccer clubs have always served as a hotbed to develop other sports, but unfortunately, without infrastructure, nothing can be done,” said Jerí Oré.

The parliamentarian indicated that an important aspect of his proposal is that these sports organizations can pay their debts under a special regulatory framework, given their situation in crisis.

He explained that the bankruptcy rule in practice has served to "screw" different creditors, give power to the Board of Creditors and even become, in practice, their owners by appointing administrators, and instead of helping these organizations that are in competitive situation, to a crisis.

As an example, he cited the Alianza Lima, Universitario de Deportes, Sport Boys, Melgar and Cienciano clubs, without the State being able to collect the outstanding debts, as in the case of the "U" and Spot Boys. That is why he said that his proposal will give rise to a respite and the payment of debts, which will help improve the sporting competitiveness of soccer clubs through the repowering of the minor categories.

After an extensive debate, the acceptance of the observations of the Peruvian Football Federation was established, in the sense that the sports organizations to which the proposal refers must be of a professional level, and comply with national and international sports regulations. that are applicable in accordance with the regulations of FIFA and the South American Football Confederation (CONMEBOL). With this, the vote approved the initiative in majority.

During the debate, congressmen Juan Carlos Lizarzaburu Lizarzaburu (FP), María Cordero Jon Tay (FP), María Acuña Peralta (APP) and Segundo Montalvo Cubas (PL), declared themselves in favor of the proposal because they considered that it would be an incentive for the sport development.

For his part, Congressman Carlos Anderson Ramírez (NA), considered the proposal unconstitutional for interfering in the regulation of a private law entity and because it seemed that it was made "with other intentions" and with its own name. Congressmen Ramírez García and Bellido Ugarte agreed with these concepts, because they would be trying to solve private economic problems.

During the session, the authorship proposal of the congresswoman, Margot Palacios Huamán (PL), who proposed the nationalization of copper and the creation of the Empresa Nacional Las Bambas SAC for a series of concepts, among them, that were not encourages national and foreign private investment, is not within the framework of the Constitution, or is not viable, as stated by Congressmen Carlos Anderson Ramírez (NA), Jerí Oré and Jorge Montoya Manrique (RP) and others.

For their part, legislators Bernardo Jaime Quito Sarmiento (PL) and Carlos Zeballos Madariaga (ID), called for greater debate and the promotion of sustainable development through the industrialization of minerals, respectively. The vote of 14 votes in favor, four against and three abstentions, determined the filing of the initiative.

Likewise, the parliamentary group approved with 17 votes in favor, one against and three abstentions, the proposal for an opinion on Bill 596/2021-CR, which proposes the Law that modifies Law No. 27889, Law that creates the Fund and the Extraordinary Tax for the Promotion and Development of National Tourism.

Previously, congressman Luis Roberto Kamiche Morante (PD), supported his proposal for a Law that provides for the return of 100% of balances of pension contributions to contributors and former contributors of the Private Pension Fund Administration System (AFP), to older 40 years old.

The same was done by Congressman Ilich Fredy López Ureña (AP), who proposes the “Law that modifies Emergency Decree 037-2021, which establishes complementary extraordinary measures in economic and financial matters aimed at strengthening the assets of specialized microfinance institutions, regarding of the patrimonial strengthening of the municipal savings and credit banks.

The same was done by congresswoman Noelia Herrera Medina (RP), who supported her proposal that proposes allocating 20% of the resources from the participation in Customs Revenue (PRA) to the Educational Fund of Callao.

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