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The Ministry of Foreign Trade and Tourism (Mincetur) has announced that it has approved the return General sales tax (IGV) foreign tourists who visit and shop in the country.
The measure, also known as “Tax Free”, will increase tourist consumption and is expected to improve inbound tourist flow.
This is important because, by reducing spent 18% will allow tourists on a budget to come and have more traffic. Not only that, those with more resources may consider additional itineraries or visits,” said Luis Helguero, head of Mincetur.
Helguero indicated that a supreme decree agreed in the Council of Ministers would be published in the next few hours, detailing this measure to eliminate the IGV payment to travelers.
The minister added that IEF is still working on the regulation, but has indicated that the measure will start to be implemented from June next year.
“We expect this (Tax Free) to come out and go live in June, but I wouldn’t be surprised if it happens a little earlier. In addition, this measure will be permanent,” he told TV channel Peru. .
In addition, he indicated that this refund of VAT to tourists will be made at the Jorge Chavez International Airport, where payment receipts for VAT refunds to tourists will be received.
According to Minchetur, this “Free tax” the work has been going on for more than 20 years, “and not only because other countries are doing it, but this is a technical issue, because taxes are not exported, and tourism is an export of services.”
Tourism will grow this year
For this year 2023, it is expected that more than 2 and a half million Travelers international in Peru as part of the recovery process of the sector, indicates the National Chamber of Tourism (Canatur).
This would mean a 25 percent increase in tourism, as foreign travelers entered the country last year at less than two million.
Canatura points out that in 2024 alone, the flow of travelers is expected to exceed the pre-pandemic flow of approximately 4.4 million. tourists.
Source: RPP
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.