Peru – COVID-19 Tax Measures

As with other Latin American countries, the Government of Peru has been preoccupied with curtailing the economic impact of COVID-19. They have unveiled a range of measures aimed at preventing a slump.

On March 19, Peru’s Central Bank decreased interest rates by 100 basis points, setting interest rates at 1.25% down from 2.25%. The Government followed this up by injecting $119.5 million into the economy for the next 2 years at an interest rate of 3.24%.

The Government’s stimulus plan equates to 12% of Peru’s GDP. On April 29, the Peruvian Government allocated 9.4 billion to combat the economic effects of COVID 19. The size of Peru’s response means its response is one of the most aggressive in the world in terms of the size of the national economy.

The measures have included both increases in public expenditure, coupled with tax breaks and a series of government-support loans to companies facing financial difficulty.

GTU will as ever continue to provide updates on the economic response to COVID-19 in Peru and other LATAM countries.