Peru : Selected Issues


International Monetary Fund. Western Hemisphere Dept.

Publication Date:

January 13, 2020

Electronic Access:

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This Selected Issues paper on Peru evaluates features of the Peruvian tax system that may have contributed to weak revenue growth, as well as reforms to strengthen the tax system. Using data on domestic tax collection in conjunction with cross-country data on tax rates, collection and tax expenditures, the chapter attempts to shed light on the factors that distinguish tax revenue mobilization in Peru from other countries in the region. The paper also reflects on recent reforms in tax policy and tax administration, and present advice for continued progress in these areas. Peru’s efforts to improve tax collection in the last 20 years have not been successful as modest gains in revenue mobilization have been offset by the impact of commodity price declines. However, given the historically strong co-movement between tax revenues and commodity prices, the uncertain external outlook poses a challenge for Peru’s ability to meet its fiscal needs. Reforms of the tax regimes for small businesses and continued strengthening of tax administration remain crucial to achieving Peru’s ambitious revenue mobilization targets of 1 percent of GDP over 2019–2020.


Country Report No. 20/4



Publication Date:

January 13, 2020



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