Peru's Development and Social Inclusion Ministry (MIDIS) and State-run Private Investment Promotion Agency (ProInversion) on Tuesday presented a S/280 million (about US$86.07 million) portfolio of 95 projects and 148 project ideas to be executed through Works for Taxes.
Works for Taxes is an income tax payment mode that allows companies to pay part of their tax bill by investing in public works, thus eliminating government institutions' need to mobilize public funds.
Following an upgrading process, the said mechanism is bound to see an upturn during the second half of 2017, ProInversion Executive Director Alvaro Quijandria projected.
Works for Taxes thus expects to top the S/536 million (about US$164.77 million) generated in investment commitments in the first semester of the year.
Said value represents a 115% rise over the same period in 2016: a significant increase underpinned by the current administration's restructuring of its private investment body.
In this context, the ProInversion Head underlined MIDIS' "proper application of the [Works for Taxes] mechanism," as well as its role in developing projects to close public-service and opportunity access gaps.
MIDIS projects
Projects prioritized by MIDIS include Cuna Mas (early childhood development) program infrastructure, as well as infrastructure and equipping of National Nutrition Program
Qali Warma schools and Tambos Program (social assistance services for isolated rural populations) service centers.
In this sense, Development and Social Inclusion Minister Cayetana Aljovin underscored the role of the private sphere in achieving social gap-closing goals through Works for Taxes.
Remarks were made during the "MIDIS Work for Taxes Project Portfolio" event.