With 95 votes in favor, 10 against and 3 abstentions, the Plenary of the Congress of the republic approved this Tuesday the new bill to exempt from General Sales Tax (IGV) -18%- various products of the basic family basket, after the modifications proposed by the Government.
In this way they acquiesced to the proposal sent by the Executive that corrected the previously approved autograph in which products that were not for mass consumption were included.
Among the main changes, only chicken, eggs, noodles, bread and sugar will be exempt from VAT, after in the original proposal Congress generalized the benefit to poultry (which includes pheasant), eggs, pasta (such as ravioli ), wheat flour and pork and beef (such is the case of the thin loin).
The exemption will be in force until July 31, 2022 (three months, assuming that the law is published in April and is in force from May 1). This was the original term proposed by the Executive, unlike the autograph of the Legislative, which extended it until December 31 of this year.
In addition, Parliament’s approach to return the accumulated tax credit (IGV paid on purchases) of all raw materials, supplies and other goods and services used in the production process is eliminated.
Now it is indicated that the tax credit of the IGV paid for “the main inputs required in the production process of the exempted goods, which will be determined by supreme decree endorsed by the MEF” can be used (without refund of the accumulated balance).
The obligation of the Executive Power to form a Multisectoral Commission to evaluate the reduction of food costs in the Amazon is also eliminated. This is due to the fact that, to date, the VAT exemption will benefit this area, since those goods and services that come from companies not incorporated in said region are taxed with this tax.
Another aspect is that the Sunat is not obliged to monitor the sale prices to the final consumer of the exempted goods, since this task corresponds only to Indecopi.
In the next few hours the autograph will be sent to the Executive, for publication in the Official Gazette El Peruano.
