Peru lawmakers propose repealing tax benefits for large agro-exporters

The Ahora Nación parliamentary group has proposed the repeal of tax benefits granted to large agro-industrial companies under Law No. 32434, commonly referred to as “Ley Chlimper 2.0”. The initiative seeks to restore the general income tax rate to 29.5% from the current reduced rate.

This proposal aligns with recommendations from the OECD in its “OECD Tax Policy Reviews: Peru 2026” report. The OECD suggests that reducing tax privileges and drawbacks for large agro-exporters could address issues regarding labor formality. The report notes that the current 15% reduced tax rate for these companies may create incentives for informal hiring, as the costs of formal employment under the general labor regime can be significantly higher than the tax savings provided by the reduced rate.