Andina

CAF approves US$250 million credit to expand tax base in Peru

12:33 | Lima, Dec. 5.

Development Bank of Latin America (CAF) has approved a US$250 million credit for Peru to fund public policy actions and reforms aimed at increasing the productivity of government action.

This will be accomplished by improving the macroeconomic management capacity and increasing tax revenues.

In this sense, the tax system digitalization, the fight against tax evasion and avoidance, and investment promotion will be encouraged.

"The modernization of institutional management —through public policy reforms leading to the strengthening of fiscal accounts and investment promotion in the country— is essential to enjoy a sustainable and inclusive economic growth to improve the population's quality of life," CAF Executive President Luis Carranza affirmed.

The program is framed within the main fiscal policy guidelines contained in the Multiannual Macroeconomic Framework 2019-2020.

Said guidelines include sustainability of public accounts, an increase of long-term structural tax revenues, and improvement of the public investment management process to boost growth.

CAF's support —through this financial contribution— will back the Peruvian Government's strategy aimed at policies that help improve the quality and efficiency of public expenditure through the modernization of administrative systems and State human capital.

Likewise, it will help increase resources by adopting measures that reduce tax evasion and avoidance, expand the tax base, and strengthen collecting entities' capacities.

(END) CNA/RMB/MVB

Published: 12/5/2018
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