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MORE THAN 2% OF GDP REPRESENTING THE TAX EXEMPTIONS AND OTHER COSTS ELECTROPERU

By: Wens Silvestre

The low tax burden in the country, not only due to tax evasion and tax avoidance, but primarily to tax benefits enjoyed by certain sectors of the economy that makes it impossible to raise the tax burden. For the Chief Sunat, Nahil Hirsh - " impeding further progress in the quest to broaden the tax base exemptions policy is representing two percentage points of GDP, as well as low levels of most Peruvians because inafectación current limits, do not pay income tax. "
According to the MMM 2011-2013, it was estimated that in 2010 these costs represent 2.21% Tax GDP, while for the present year 2011 was estimated at 2.04% of GDP, but let's not forget that in late January this year, rationalization process was suspended the exemptions in the Amazon. This would imply that tax expenditure estimates for this year would increase to reach the same level as estimated by 2010 (see chart).

Who lose the tax benefits?

actually are benefiting various economic agents involved in sectors such as agriculture, mining, oil, education, fisheries, construction, manufacturing (zones), transport, culture and sports (including non-sporting events, etc.). In reality, the state lacks a visionary policy on tax policy. Tax benefits are granted only for convenience "cheap politics" arguing situations and using the poor as those who directly benefit with these measures. It has been abundantly demonstrated that the exemptions, inafecciones, returns, differentiated rates and other tax benefits are not only discriminatory, but distorts the functioning of the virtues of the market, creating inefficiencies in resource management, and bottom benefiting certain business groups.

We have repeated on many occasions that the granting of tax benefits should be made after evaluation of costs and benefits and subject to the achievement of expected results. The Amazon is the bad example that benefits corporate-mercantilist-groups that have not generated any profit in the development of the Amazon region, more on the other hand has created and institutionalized a bad habit of living off the state, justifying "n" situations. There are regions in the country worse off than they would have right to special treatment, regions and Apurimac, Huancavelica and Ayacucho, however, in these few economic units pay their taxes.

The other chronic illness is referred to the tax inafección the education sector (private universities, private institutes, private schools) that businesses have become "round" for their promoters to have the luxury of financing political parties involved in the electoral process. These educational institutions, laboratories should strive to implement and fund research projects of their students. Therefore, it is important that the state remove these tax benefits and education sector would capture more tax resources should be used to finance through scholarships to top students from both schools, colleges and universities. Necessarily have to be a constitutional reform in taxation, this must be the challenge of the new government.

Most outrageous are the benefits have yet certain mining companies, with the famous law contracts were granted tax benefits including tax returns, different rates of income tax (many mining companies fail to pay 30% of income tax that will accrue to do their like) these measures, supposedly to promote investments in this sector, it is outrageous for a state that requires basic needs of the population.