Congress approves initiative to exempt basic food items from VAT

The full of Congress approved an initiative that has the purpose of exempting the General Sales Tax (IGV) to basic food, in order to benefit Peruvian families.

The proposal was supported by 97 congressmen, nine once morest and two abstentions. Subsequently, by 96 votes in favor, ten once morest and one abstention, he was exonerated from the second vote.

The consensual substitute text is the product of the initiatives presented by the Executive Power, as well as the benches of Popular Action, Popular Force, Free Peru and Democratic Peru.

According to the initiative, it proposes to establish the exoneration of the IGV that taxes the import or domestic sale of chicken, eggs, milk, wheat flour, noodles, sugar and meat products.

Also, create a mechanism for the use and refund of the tax credit of the IGV accumulated that would have taxed the acquisition of raw materials and supplies and other services used in the production process of exempted food.

In addition, Appendix IA is incorporated into the Single Ordered Text of the Law on General Sales Tax and Selective Consumption Tax, approved by Supreme Decree 055-99-EF.

Substitute text of the bill:

The president of Congress, María del Carmen Alva, highlighted on her Twitter account the law approved in Parliament and asked President Pedro Castillo for its urgent promulgation.

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