A bill temporarily abolishing value-added tax on basic food was approved by parliament yesterday. Peru. His goal is to slow down the rise in prices that has hit citizens hard in recent months.
The measure, backed by the government of President Pedro Castillo, is estimated to cost 3.8 billion soles (some 920m euros) in lost government revenue.
Its suspension VAT will initially last for eight months. It concerns bread, chicken, sugar and pasta, according to the bill.
The final list of products, however, was reduced, following objections from the coalition, which argued that some products, such as beef, were not absolutely necessary.
Consumer prices rose 1.48% in March. The price level is 6.82% higher than last year. The monthly increase was the largest since 1996.
Peru’s central bank does not expect inflation to return to the target range (1 to 3%) on an annual basis until early 2023, according to Reuters and the Athens News Agency.
Protests erupted this month, with roadblocks and riots over rising commodity prices, especially fuel, as part of a backlash in the global economy following Russia’s invasion of Ukraine.
Source: News Beast
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