Peru’s government is pushing comprehensive tax reforms to stimulate key industries, aiming primarily at the forestry and fishing sectors. A new economic zone near Chancay port is key to these reforms, featuring a temporary 0% income tax. Despite concerns about potential revenue loss, the strategy aims for long-term economic growth supported by positive global market trends.
Peru’s finance minister is implementing comprehensive tax reforms designed to boost strategic sectors of the economy. The focus is primarily on providing tax incentives to enhance the forestry and fishing industries, aiming for competitiveness against countries such as Chile and Ecuador. The government’s willingness to consider suggestions from industry groups indicates a collaborative reform approach.
A key facet of this strategy involves the creation of a specialized economic zone near the newly developed Chancay port. This area aims to attract industrial investment with an appealing 0% income tax rate, although it faces some opposition concerning potential revenue loss. Finance Chief Salardi argues that the region’s current economic inactivity alleviates concerns over immediate revenue deficits, emphasizing long-term benefits such as job creation and industrial growth.
According to IndexBox data, there is considerable untapped potential in Peru’s targeted sectors. The global market for forest products is expected to grow significantly by 2026, and fishery production is also anticipated to rise. These trends support the Peruvian government’s efforts to revitalize these industries to enhance the national economy.
Peru’s strategic tax reforms aim to invigorate key sectors, particularly forestry and fishing, through competitive tax incentives and collaboration with industry stakeholders. The establishment of a special economic zone with a 0% income tax policy highlights the government’s focus on attracting investment despite concerns over immediate revenue losses. With promising growth trends in global markets for these sectors, the reforms may offer substantial long-term economic benefits.
Original Source: www.indexbox.io
