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Car Prices Decrease as Taxes are Eliminated in Peru

(LIP-ir) --- Beginning in January 2008, car prices in Peru will decrease by $2,000 - $2,500, said the country's Association of Automotive Representatives (ARAPER) and Peru's Automobile Association (AAP), stating that a 10 percent importation tax had been eliminated by the government.

Now that it has been published in El Peruano, Peru's gazette, the new regulation goes into effect today and will apply to the vehicles being received by the country's customs agents. It will not, however, apply to the vehicles car dealers have in stock, said Ivan Besich, president of ARAPER.

While Besich affirms that car prices will only be reduced by 10 percent, Carlos Casas, Chief adviser for Peru's Ministry of Economy and Finance has assured that car prices should decrease by 20 percent.

"It depends on the decision each car company decides to take, but vehicles should be decreasing in cost by 10 percent. It's up to each company", said Besich.

"In theory prices should decrease by 20 percent, in proportion with the drop in taxes. It depends on the competition as well as the supply and demand", said Casas.

Peru's government has reduced and eliminated sales tax on new vehicles and importation tariffs, thus amounting to a 20 percent decrease in the taxes placed on new cars imported into the country.

Government representatives have announced that these measures are being taken to encourage motorists to convert their new vehicles to run on natural gas. Authorities have stated that this will get rid of a great deal of the country's old vehicles and at the same time foster the use of natural gas.

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# Cusqueño says :
24 December, 2007 [ 17:25 ]

Like anyone honest in Peru can buy a car. Tourists should import several with them, handing them out to cusqueños.

# Splaktar says :
25 December, 2007 [ 11:31 ]

Bah.  Great news right after I buy a used car for 2x the price it would cost in the US.

# Cusqueño says :
25 December, 2007 [ 13:06 ]

Avoiding taxes means in poorer regions of Peru, like Cusco, there is less money for us. The rich in Lima have the obligation to pay for our services after they killed our ancestors.

# jim glen says :
25 December, 2007 [ 15:09 ]

does this apply to new cars only
or does this apply to cars people import?

I WOULD LIKE TO BRING A CAR FROM THE U.S

# Splaktar says :
25 December, 2007 [ 16:11 ]

From what I can tell it applies to all imported cars.  The cars frequently imported into Peru atm are new cars from typical companies or the used cars from Japan (Toyota and Nissan) that are imported as parts to get lower tax rates and then reassembled (timon cambiado) and sold.  All cars imported into Peru must be less than 10 years old by law.

# Cusqueño says :
25 December, 2007 [ 17:02 ]

Taxes are needed for the redistribution of wealth. We will suffer as a result of the selfish greed of Lima

# Walter E. says :
25 December, 2007 [ 19:39 ]

Cusqueno,<br> pleople that buy new car problably don't know the car is worth less a soon as it leaves the lot.  Buying a brand new car is problably the worst investment you can make.  I am glad that it will cost less to import a used car to Peru.  Feliz Navidad!

# Ama Yanna Pupu says :
26 December, 2007 [ 07:36 ]

Cusqueño wtf  yanna pupu? 
so, you want it all without working, you dont want tourists to come to cusco, you want to blame everything on what happened to your ansesters? what a cry baby, booo hooo poor lazy me... that song will get you no where. Ama qella baby!!!!
why dont you try working for a living and stop crying. 80% of cusco live off tourist income, so you want your pisanos to suffer with out work cause your too lazzy??  keep on crying and more and more limeños and gringos will take the jobs in cusco and prosper, then you will still be crying.
Your kind of attatude shows how 178 spanards conquested the Inkas.
you must not even live in peru cause you would know that all taxes are stolen by politocs in lima, what does make it to cusco is stolen by the Lima warmi Acalde of cusco.
it looks like you are just a troll on this comment page,

# Cusqueño says :
26 December, 2007 [ 09:05 ]

Do not insult me please. I want more turists here, and that they pay more. Fair money, happy Cusco.

I know Lima steal all from us. It is like that since the Spanish.

# Ama Yanna Pupu says :
26 December, 2007 [ 10:03 ]

there is no need to insult you,,cause you are doing a great job of that all by yourself.

# Adrian says :
26 December, 2007 [ 12:46 ]

Idiots
Making cars more affordable to the average person is good for the country and economy of Peru. Car sellers and buyers benifit. If you want tax dollars to go into helping the poor first you need to elect goverment officials who will represent your request for social programs and reforms.
Cuesqeno you truely ignorant and illeterate raving without any understanding of what you are saying! Also taxes should be taken from those yielding the highest incomes not just any poor family or individual trying to afford basic transportation.

# Cusqueño says :
26 December, 2007 [ 13:43 ]

You are right Adrian. I will liked the rich people to pay 80% tax as minimum. If all pay the tax, Q'osco can be free of poverty so easy.

# Adrian says :
26 December, 2007 [ 14:53 ]

Cusqueno you have the basic idea. Although 80 percent is to high a margin and would tip the scales away from a free market/democracy.This sytem still provides the best engine for driving any economy, its what you do with it  that truely matters. 

# Cusqueño says :
26 December, 2007 [ 15:36 ]

In Peru it is used to abuse those in the sierra.

# Walter E. says :
26 December, 2007 [ 16:19 ]

If Communism worked their wouldn't be over 1/2 millions Cubans living in Florida. Capitalism works only if you do not let big business run the goverment. I can choose to buy or not to buy but I have a choice, in a  comunist country I don't.  Cusqueno put your energy educating our people now in the present and do not waste it on the past.

# fabrizio says :
26 December, 2007 [ 16:32 ]

I have my expedition 2000 anybody know what can I do in order to send it over to Peru...please let me know

# Ché....vrolet says :
26 December, 2007 [ 16:49 ]

Comrade Cusqueño again is correct!  He is a true follower of the one true Bolivarian Revolution and will be rewarded with the Minister of MTC posting when Comrade Ollanta assumes command, er. I mean office.  He well knows that it is the imperialist yanques who are the principal cause of the pollution and our fiscal hardship in Peru.  It is common knowledge that the CIA conducted secret experiments on Peruvian taxi drivers to force them to urinate on the side of the road every 5 KM.
The "mano oscura" of gringo manipulation is the principal cause of our problems and certainly has forced Peruvians to drive vehicles with an average age of 17 years.  It is a global conspiracy by the industrialized imperialistic countries led by the US.  The US and other imperialistic industrial pig capitalist countries have refused to sell cars to Peruvians at below cost.  Redistribution of wealth begins with the fundamental right of private transportation.  Don't believe the lies of the gringo puppet publication El Comercio - the truth can only be found on the pages of El Chino. 
You need also to know that Lori Berenson was secretly in Peru as a double agent of the US mining industry and was jailed because she was going to reveal state secrets about the state owned mine, Centromin.  These lies included how the state had polluted La Oroya long before Doe Run assumed control.  Lies.  
Comrades, we know that what the poor in Peru want is a return to state dependency because democracy is too hard.  They don't really want to make difficult choices.  They want a return to the state run markets and price controls because they fondly yearn for long lines queing for bread, milk and cheese.  They want the 7000% annual inflation.  And state run telecommunications because they all fondly remember the days when a phone line took 5 years to be installed and cost $4,000.
I agree with Comrade Cusqueño.  Tax the gringo tourists hard.  They are rich gringos and have the money.  And they have no where else in the world to go to spend their filthy capitalist pig gringo dollars.  So they MUST come to Cusco.  They are captive tourists!  Now it is our turn!  ¡Viva Ché...vrolet!
 

# Cusqueño says :
26 December, 2007 [ 16:57 ]

Who said I am not a big fan of capitalism? I just want the world to give to us what is ours, for this, in Q'osco, we always charge more for everything to turists. A turist cant even enter a church without paying. Maybe the church is regretable but the way it must be to give us a fair starndard of living like in the USA.
I am sorry if you dont like to pay different money from others, but because you have more, you must pay more too.

# Comrad Sunat says :
26 December, 2007 [ 17:30 ]

so what kind of tax are we all talking about? the only tax in Peru is 19% IGV general sales tax. There is no such thing as Income Tax, no school tax, no state tax, no city tax.  Now what tax is comrad Cusqueño talking about that the rich in lima should pay 80% of ? the 19% IGV? the rich in lima would like that cause 80% of 19% is 15.2% IGV .

# Ché....vrolet says :
26 December, 2007 [ 17:43 ]

Comrade Cusqueño, the proloteriat begs your forgiveness.  We are obviously wrong.  You are not destined to be our Minister of MTC.  Because you have demonstrated such a strong knowledge of the competitive free market system we will have a posting for you as the Minister de Comercio Exterior y Turismo.  I am sure you have some additional excellent ideas how to attract foreign tourists.  Have you thought about doubling the price of an airline ticket for all gringos coming to Peru?  The simple math tells us that we will make twice as much.  Why didn't I think of that?  I guess that's why I'm working in Lima and not Cusco.  The altitude obviously makes the brain sharper.  Do you have any more of the stuff you smoke up there in Cusco?  I am sure the gringos will pay you handsomely for it. 

# jb says :
26 December, 2007 [ 18:09 ]

Comrade Sunat: There is very definitely a personal income tax in Peru.  The personal income tax is bracketed: 15% - 30%.  I pay this to SUNAT every month.  If you make any money at all, you are immediately in the 30% flat bracket...no deductions.  Since 60% of Peruvians work in the informal economy they pay no income tax.  This is why we have such a high sales tax of 19%.  It is a consumption tax and is the only way SUNAT has to tax those who don't pay income taxes.

# Comrad Sunat says :
26 December, 2007 [ 19:33 ]

JB
in the provadance ive never heard of that, must be they get you in lima for that tax. I would say more like 90% of peru does not pay that.

# Marle says :
16 December, 2008 [ 15:43 ]

I would like to bring my car to Lima Peru but i dont know what to do, please if anybody knows tell me. I ll apreciate it.
Thanks

# South Florida says :
15 September, 2009 [ 20:57 ]

Who can help with setting up an auto & motorcycle and or auto/motorcycle parts channel for parts / cars wanted in peru and originating in South Florida. Export from Miami. Which Peruvian port would be best (least costly and preferrably benefit the less developed areas of peru along with less bueracracy).

I am an american married to a peruvian (Lima) and we are seriously considering the launch of a business that would help both buyers and sellers of cars, motorcycles, and parts to supply peruvian demand with the small business mentality (big business controls all of our lives and the level of corresponding corruption with ALL governments including ours in the USA have gone over the top).

Anyway, I can make this happen on my end but need to link up with knowledgable and professional help in Puru.

Our long term goal is to spend much of our time in Peru. USA is growing into an entirely different place. I truely believe that anyone that values their freedom will need to do it in a foreign land that strongly embraces the value of true democracy and government by the people and for the people. Not that way anymore in the USA.

# Lionheart Central Florida says :
20 November, 2009 [ 15:14 ]

 I am also a american married with peruana. We want to bring our car to
Peru with our stuff. Appalled at Bush-Obamanomics.I thought Peru had enough of Shining Path..Wifes family wants us back...Socialism has failed everywhere it been tried...

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