Climate change taxation reforms and incentives in Peru

1. Has your country ratified the Paris Agreement? 

Yes. Paris Agreement was ratified by the Peruvian government in July 2016.

2. Has your country introduced environmental taxes?

2.1 Energy taxes

No.

2.2 Transport Taxes

No.

2.3 Pollution taxes

No.

2.4 Resources taxes

Peru introduced a Tax on Consumption of Plastic Bags in 2019. Under this tax, the taxpayer is the individual or company buying products in commercial establishments along with plastic bags. The tax is a fixed amount increasing each year from 2019 to 2023 (in 2023 the tax will amount to S/ 0.50; aprox. USD 0.15) on each plastic bag.

Excise tax in Peru is also used as an environmental tool to reduce the consumption of alcoholic beverages, soda, cigarettes, gasoline as well as other products that harm public health. It is also used to avoid or reduce the import of used vehicles.

Finally, the Aporte por Regulación contribution is a payment in favour of the OEFA (Environmental Assessment and Control Agency). Mining, hydrocarbon,electricity companies, among others, are within the scope of this contribution. The amount is not above 1% on the sales invoiced (different rates apply to each sector).

3. Has your country introduced a carbon tax?

No.

4. Does your country offer sustainability incentives (tax credits, subsidies or other business incentives) to encourage taxpayers to engage in behaviours and develop technologies that can impact positively the environment? 

There is a special regime for companies installing and operating premises for electricity generation activities based on renewable resources, such as wind, solar, geothermal and biomass. These companies will take advantage of the the accelerated depreciation regime (20%) for Income Tax purposes (the general tax depreciation rate is 10% for equipment and movable goods).

5. Has your country recently announced tax reforms connected to climate change? 

N/A

6. Other comments

There is no clear message from the Peruvian government on tax policy regarding climate change or environmental issues. Some signals have been shown instead (as mentioned above).

Portrait of Rolando Cevasco
Rolando Cevasco
Partner
Lima