Congress and MEF ready to correct errors of exoneration of IGV for commodities

The Congress of the Republic has summoned the Ministry of Economy and Finance ( MEF) for this Monday, April 11, in order to discuss and provide a solution to the law that exonerates products from the basic family basket from IGV, which was approved last Thursday, April 7 and included some foods that are not for popular consumption.

In a statement, the Legislature responded to the disagreement expressed by Prime Minister Aníbal Torres last Saturday, April 9, urging the national representation to correct it. What this communiqué expresses is as follows:

1. The preparation of the substitute text for the initiative was attended by the adviser of the Ministry of Economy and Finance (MEF), without noticing any comment on the aspects criticized by the Executive.

2. The National Representation decided, by a large majority, to approve this regulation for the benefit of millions of Peruvian families.

3. The Congress of the Republic reaffirms its readiness, through dialogue and mechanisms established by law, to overcome the differences in the approved norm, because it is by means of alleviating the economy of our most vulnerable compatriots

4. We propose immediately, following the opinions of the Executive, to give a quick solution so as not to harm millions of families nationwide. And we convene for Monday, April 11, at 8:00 a.m., at the Congress of the Republic, the Minister of Economy and Finance, Oscar Graham Yamahuchi, to a table of work to clarify the technical aspects of the approved standard,” said the entity in its letter published on social networks.

In addition, the Parliament commented that the preparation of the alternative text of the initiative had direct advice from the MEF “without noticing any comment on the aspects criticized by the Executive”.

In response, the Minister of Economy and Finance, Oscar Graham, advanced his willingness to dialogue.

“In the face of the convocation of the Congress, we will be willing to discuss and improve the norm, in the sense that it is to do a joint work and obviously benefit those who are affected by the rise in prices,” Graham commented in a dialogue with TV Peru.

WHAT PRODUCTS WERE IGV REMOVED FROM?

The Plenary Congress approved the bill to exonerate some products from the basic family basket from the General Sales Tax (IGV) until December of this year. Among them are chicken, eggs, milk, wheat flour, noodles, sugar and meat products. However, it did not include bread and oil, but it did include loin fino, pheasant, guinea fowl and other imported products, which are not popular in Peru.

The rule also aims to create a mechanism for the use and return of the tax credit of the general sales tax accrued that would have imposed on the acquisition of raw materials and inputs and other products or services used in the production process of food that are exempted by this Act.

CONGRESS ANSWERS

Faced with the criticism and being made clear by the president of the Council of Ministers, María del Carmen Alva defended the Parliament and stated that “today we are going to see that issue of modifying this item and fixing the issue [of the law that exonerates the IGV], what cannot be fixed with an article is the misgovernment and chaos that we are experiencing, by that we all ask the president to step aside,” he stressed.

“In that text it did not expressly say about the exoneration of the goose or the pheasant, but since it is a technical issue, it says “meat”. That can be corrected, there are always observations and they are corrected, it was not necessary that those statements of the premier were given just to disunite,” he added.

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