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Peru Budget for 2017 Includes VAT Rate Cut

29 September 2016

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Proposed Changes

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Peru

Peru's Budget for 2017 includes plans for a cut in the effective value added tax rate (VAT) from 18% to 17% (currently 16% VAT plus 2% municipal sales tax). However, cuts in the rate have proved controversial in the past and with opposition in Congress, it is uncertain if the government will be able to push the cut through (similar cuts proposed in 2014 were defeated).