Peruvian Prime Minister Luis Galarreta has asked the Chamber of Deputies for legislative powers to simplify tax rules for micro and small enterprises as part of a five-year economic agenda.
Galarreta, the president of the Council of Ministers, presented President Keiko Fujimori's economic plans to the lower house of Peru's Congress on Thursday. The agenda includes requests to change general tax obligations, Income Tax rules and the country's customs regime.
The application of the changes will depend on the formal request for powers that the executive branch presents and the subsequent debate in Congress.
The government argued that Peru's current tax system creates incentives for businesses not to grow. Moving from a smaller tax regime to a larger one brings new obligations, which the executive said leads some business owners to split their operations, deliberately avoid exceeding sales limits, or remain in the informal economy.
Galarreta said the government wants to review the tax regimes for smaller companies, known as mypes, to simplify the rules and make the transition gradual as businesses increase their capacity and revenue.
The presentation did not specify what rates would change, the income limits, or how a new scheme would work. Galarreta did not detail how many tax regimes would remain in force, the conditions for moving between them, or whether the overhaul would result in a lower or higher tax burden for businesses.
Income Tax and Customs Reforms
The requested legislative powers go beyond small businesses. Galarreta announced plans to simplify formal tax obligations, clarify Income Tax rules, and modernize the customs rules governing the entry and exit of goods.
The government also intends to review certain tax exemptions, though Galarreta did not identify which benefits could be modified or what effect the review would have on the sectors currently covered.
The tax agenda is part of a broader plan to reduce tax evasion and informality while boosting public and private investment and expanding financing. The Ministry of Economy and Finance will create four commissions to address those four areas.
For informality, the stated objective is to bring more workers and companies into the formal economy. For financing, the government wants to make it easier for companies to access resources for projects. Galarreta outlined the goals but did not specify the measures that would achieve them.
Investment and State Purchases
The prime minister outlined spending and investment targets across several sectors of the Peruvian economy.
For small businesses, the government expects to purchase nearly 11 million soles in goods through the state's Compras a MYPErú program in the second half of 2026. The purchases will mainly target the textile, clothing, leather, footwear and metalworking sectors.
In agriculture, Galarreta announced more than 1 billion soles in loan disbursements from the state lenders AGROPERÚ and AGROBANCO during 2026. He also said the government would unlock 75 stalled irrigation projects, representing an investment of 618.9 million soles.
The energy sector target is to add six power generation projects totaling 1,096 megawatts by July 2027.
Galarreta noted a mining investment portfolio of more than $33 billion through 2031, which relies on private companies. He said the state would seek to reduce hurdles and provide greater predictability for the projects without lowering environmental standards.
He also announced that a free trade agreement with Hong Kong will take effect in 2026, and that the state will expand its corporate purchases.
