The Peruvian government has given a green light on Thursday for a third round of emergency spending increases this year in addition to measures to quicken environmental permitting in an effort to boost sluggish economic growth, Bloomberg reports.
The Peruvian government is also considering tax reforms and has not ruled out cutting the corporate tax rate from 30%, Finance Minister Alonso Segura told Reuters.
The Finance Minister told Reuters that the Peruvian government is set to announce potential changes to the tax system by the end of the year, according to Reuters.
The new package announced on Thursday includes 1.6 billion soles ($547 million) in additional spending, which includes a one-time, end of the year bonus for 1.7 million state workers, Segura told reporters in Lima, according to Bloomberg.
The new package of measures announced on Thursday “will continue reactivating the economy in the short term” and will help make Peru the fastest growing nation in the region in the medium term, Segura said, according to Bloomberg.
Segura said the new measures will cut the wait times for environmental approvals for some mining and oil and gas projects by over three years, according to Bloomberg.
The government will also remove import tariffs on 1,800 raw materials that are used by local industries, Bloomberg added.
“These measures have teeth and they’re going to have a real impact,” Segura said. “But we’re not going to stop there. More measures are going to come.”
Policy makers have been struggling to jumpstart the stalling economy as growth in the second quarter expanded at the slowest pace since 2009 as metal exports and mining investment as fallen.
Source: Bloomberg, Reuters
Discussion
No comments yet.