Peru’s Minister of Economy and Finance, Alex Contreras, informed that, in the next two weeks, the Executive Power will present its own bill to promote electromobility before the Congress of the Republic.
It is worth mentioning that the portfolio recently rejected a project in Congress to promote electric mobility in the country, alleging that it would generate a fiscal cost equivalent to some US$ 5,476 million due to an eventual exemption from different taxes.
According to Economía y Finanzas, measures such as the exemption of sales tax, income tax and consumption tax in the incipient market, would have an excessive fiscal cost.
New Light in the Tunnel
During his Economic Panorama broadcast, Contreras said that tax incentives will be issued that do not necessarily have to do with further tax cuts. Currently, electric vehicles pay a 0% ISC rate.
“We want to ensure electromobility with measures that are fiscally sustainable. There are limited incentives, but of high impact, such as accelerated depreciation, VAT refund, incentive to scrap, among others,” he said.
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The Minister of Economy explained that the axis for this conversion of the vehicle fleet will be linked to a program for the replacement of units of a certain age.
“Any policy that seeks to develop a sector must be comprehensive. It is not enough to fill the country with cars, but also to seek incentives so that there is a process of substitution for more efficient vehicles. And we are also going to do this,” said Contreras.
Advances
In the midst of the controversy between the Legislative and Executive powers, the electric vehicle market is experiencing significant growth in Peru.
In May of this year alone, the Peruvian Automotive Association (AAP) reported that the sale of electrified cars increased considerably.
In total, according to data from the National Superintendence of Public Registries (Sunarp), 348 electrified cars were sold in the fifth month of 2023, registering an increase of 37.01% compared to the same period of 2022.
