Involved Brazilian Wax

General Sales Tax (VAT) reduction of 1% Alan García

The Ministry of Finance has decided to reduce the value of general sales tax, known as VAT, amounting to 19%, a value of 18%, this means a reduction of one (1%) percentage point, if approved by Congress.

IGV The structure consists of three items:

- General Sales Tax 17%

....->

- Municipal Promotion Tax ....-> 2%

- College Fund (without allocation to a date)

According to historical tables in tax revenues by 2009, the VAT makes up 7.7% of GDP, this is S /. 29,519 million soles. A reduction of 1%, as proposed by the Peruvian President Alan Garcia, would mean a reduction in the order of S /. 1.554 million soles.
http://gestion.pe/noticia/711283/benavides-rebaja-igv-no-crearia-problema-fiscal

Statistics on Central Bank structure follows the Central Government Revenues:

I. INCOME TAX
1. Income Taxes
2.
estate taxes 3. Export taxes
4. Import taxes
5. General sales tax (GST)
- Internal
- Imports
6. Excise tax (ISC)
- Fuels
- Other
7. Other tax revenue
8.
valued documents II. INCOME TAX
III. TOTAL (I + II)

Now, the transfer of the effect of one percentage point reduction (%) are not necessarily going to the pockets of the customers of products and services for direct consumption, which are sold including VAT (selling price), the immediate effects may be best appreciated in products that are listed with sales value and sales tax separately, and that if you create a direct impact on the economy, giving a more dynamic, due to cost reduction through tax cuts .

For example, a transport company a total daily consumption of 300 gallons of 90 octane gasoline at a retail price of S /. Unit 13.0, has a daily expenses of S /. 3,900 and this value would be reduced to S /. 3,867 a day with a saving of about 0.84%, obviously this figure projected to 288 days shows a saving of S /. Approximately 9,440, then would allow the company to operate up to almost 3 additional days with the same expenditure budget. Finally

Peruvians

be grateful for that reduction, but we have to see carefully the effects on the national treasury, where many depend on wages and salaries of public officials, including police, public schools and many others .