Peruvian Tax Law Sparks Controversy: Winners and Losers

Peruvian Law Changes IGB and Foncomún: Experts Weigh In Peru's Congress recently approved a law altering the country's tax structure. The law reduces the general sales tax (IGB) from 16% to 14% while simultaneously increasing the municipal compensation fund (Foncomún) from 2% to 4%. This change has sparked debate among economists and political analysts. "This is the most damaging fiscal law of the century," stated Waldo Mendoza, a prominent economist, expressing concern over the potential long-term effects on the national budget. The reduction in IGB revenue could significantly impact government spending on crucial social programs. The increase in Foncomún, however, is expected to benefit municipalities, particularly those controlled by the Alianza Para el Progreso party. Critics argue this disproportionately favors certain regions and raises questions about potential political motivations behind the law. The video analysis highlights the potential for a significant budget shortfall and raises concerns about the fairness and transparency of the legislative process. Further investigation is needed to fully assess the law's impact on Peru's economy and its long-term consequences.