{"id":19953,"date":"2023-06-22T05:00:00","date_gmt":"2023-06-22T10:00:00","guid":{"rendered":"https:\/\/latamobility.com\/?p=19953"},"modified":"2023-06-21T16:46:16","modified_gmt":"2023-06-21T21:46:16","slug":"high-fiscal-costs-slow-projects-to-promote-electromobility-in-peru","status":"publish","type":"post","link":"https:\/\/latamobility.com\/en\/high-fiscal-costs-slow-projects-to-promote-electromobility-in-peru\/","title":{"rendered":"High Fiscal Costs Slow Projects to Promote Electromobility in Peru"},"content":{"rendered":"\n<p><strong>The Peruvian government rejected a project in Congress to promote electromobility 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<\/strong>.<\/p>\n\n\n\n<p>According to information from the <strong>Reuters <\/strong>news agency, the project is currently being debated in the Legislative power, dominated by right-wing parties, <strong>seeking to encourage the electric vehicle market in the South American nation<\/strong>, a global trend for the replacement of fossil fuels such as gasoline.<\/p>\n\n\n\n<p>Through an official statement, <strong>the Ministry of Economy described the proposal as regressive and ineffective because it mainly benefits a segment of the population that does not need state aid<\/strong> and will not contribute to reduce the impact of environmental pollution or vehicle congestion.<\/p>\n\n\n\n<p><strong>Related content: <\/strong><a href=\"https:\/\/latamobility.com\/en\/uber-pledges-zero-emission-cars-globally-by-2040\/\"><strong>Uber Pledges Zero Emission Cars Globally by 2040<\/strong><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-questioned-figures\"><strong>Questioned Figures<\/strong><\/h2>\n\n\n\n<p>Measures such as the exoneration of sales tax, income tax and consumption tax in the incipient market in the country, would have <strong>a fiscal cost of approximately 20,000 million soles between 2023 and 2032<\/strong>, the economic portfolio specified.<\/p>\n\n\n\n<p>The exonerations reach all types of four-wheeled electric vehicles, &#8220;including luxury cars and golf carts,&#8221; the ministry stated. <strong>Peru took in 2018 a first step to promote electromobility with the reduction to zero of the import tax on electric vehicles<\/strong>.<\/p>\n\n\n\n<p>In the communication, <strong>the Ministry of Economy added that the initiative is excessively costly considering that global producers already plan to migrate their production to electric vehicles within 5 to 10 years<\/strong>. <\/p>\n\n\n\n<p>&#8220;In that sense, there will be a natural transition that does not require policy measures with high fiscal and regressive impacts,&#8221; it stresses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-project-to-be-reviewed\"><strong>Project to be Reviewed<\/strong><\/h2>\n\n\n\n<p>After the Peruvian Executive Branch&#8217;s statement, <strong>the Congressional Economic Commission backed down in its attempt to grant more tax benefits to companies<\/strong>.<br><br>This occurred during the second discussion of the bill for the promotion and development of green transport and zero emissions, which <strong>intended to exempt companies that use electric vehicles as part of their production process from income tax (IR) for five years<\/strong>.<\/p>\n\n\n\n<p>In addition, <strong>the same company would pay a reduced rate of 5% income tax on its total income, and not the general rate of 29.5% currently in force<\/strong>.<\/p>\n\n\n\n<p>Likewise, other tax benefits were also granted, such as the exoneration of IGV (Value Added Tax) to electric car dealers.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Peruvian government rejected a project in Congress to promote electromobility 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 information from the Reuters news agency, the project is currently being debated in the Legislative power, dominated&#8230;<\/p>\n","protected":false},"author":8,"featured_media":19950,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[2057],"tags":[1564,1281,1489],"class_list":["post-19953","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pubic-sector","tag-electric-cars","tag-electric-mobility","tag-sustainability"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.7 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>High Fiscal Costs Slow Projects to Promote Electromobility in Peru - 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