Diagnostic of Peru’s fiscal system in relation to GHG emissions

The main objective was to provide a comprehensive diagnosis of the Peruvian fiscal system to map all the taxes, fiscal incentives, and subsidies that are associated with activities, products, and services that directly or indirectly generated GHG emissions. This was achieved through more specific objectives, such as the mapping of all taxes, tax incentives and subsidies. Special attention was given to energy-related products and services, mining-related products, and the forestry sector.

Fiscal incentives, and subsidies that have a direct or indirect relationship with GHG emissions were analysed and categorised by sector, economic activity, and geographical region. The economic, financial, distributional, and fiscal impact of the current system was also assessed by sector and socio-economic category.

A fiscal strategy consistent with the country’s emission reduction commitments was proposed to ensure a positive or neutral fiscal impact.

Finally, a comprehensive and detailed analysis of the legal and regulatory framework and existing fiscal regimes was carried out.