Friday, June 20

Congress shoves back the government's tax increase package

iWon / Reuters Peru Congress panel rejects tax proposals: "The panel late Thursday rejected the proposals after Finance Minister Silva Ruete defended the tax measures that along with spending cuts were aimed at raising 752 million soles ($216 million) for pressing social demands. Silva Ruete said the revenues were necessary to help Peru meet its 2003 fiscal deficit goal of 1.9 percent of gross domestic product." It's going to take some imagination to convince Congress that it needs to increase taxes. The taxes base is so small and the tax collection system so rudimentary that the government does not have any leeway for shifting the tax burden.

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