Small business regulations in Perú and some political problems
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Small business regulations in Perú and some political problems
- 1. Small business regulations in Perú and some political lessons Pacific Rim Policy Conference, May 24, 2007 Honolulu, Hawaii Instituto de Libre Empresa (ILE) Tel/Fax (51-1) 273-4183 www.ileperu.org info@ileperu.org
- 2. USA Panamá Perú Constitution 7 articles 320 articles 205 articles 27 Amendments 3 Final provisions 16 Final provisions 2 Transitory provisions 2 Transitory provisions Year 1,787 1,994 1,993 No. Of Constitutions 1 4 13 Laws 2,422 5,222 28,984 Ranking in Economic Freedom 1 4 47 63 Ranking in Business Facilitation 2 3 81 65 Population 298.4 mills 2.8 mills 27.2 mills GDP per capita (2006) 2 USD 43,740 USD 4,630 USD 2,610 http://www.gpoaccess.gov/constitution/browse2002.html#annotations http://www2.congreso.gob.pe/congreso/constitucion.doc http://es.wikipedia.org/wiki/Lista_de_pa%C3%ADses_por_PIB_%28PPA%29_per_c%C3%A1pita http://es.wikipedia.org/wiki/Estados_Unidos http://www.bcn.cl/lc/lmsolicitadas/ulp (1) 2007 Index of Economic Freedom, The Heritage Foundation y The Wall Street Journal (2) Doing Business 2006 (www.doingbusiness.org) 2 José L. Tapia-Rocha, General Director
- 3. Fact 2: Small business suffers legislative hiperinflation 3 José L. Tapia-Rocha, General Director
- 4. Fact 3: STATISM DISTORTS BUSINESS POPULATION STRUCTURE BB 10% BB 0.1% MB 25% MB 1.9% SB 65% SB 98% 4 MILLIONS OF UNITS Normal Perú 4 José L. Tapia-Rocha, General Director
- 5. Fact 4: STATISM PUTS BUROCRATIC BARRIERS Facilitators for businesses initiation Indexes Countries Argentina Brazil Chile PERU Venezuela Procedures 15 15 10 10 14 Length (# days) 68 152 28 100 119 Costs (USD) 324 331 493 510 792 Source: Ciudadanos al Día, based on Index of Doing Business from World Bank. 5 José L. Tapia-Rocha, General Director
- 6. Fact 5: STATISM CREATES NON INTENDED CONSEQUENCES 6 José L. Tapia-Rocha, General Director
- 7. Fact 6: STATISM DEPENDS OF HIGH REDISTRIBUTION OF WEALTH Taxes Rates and others National Government • Contribution to Senati • General on Sales (19%) • Contribution to public works • Revenue Tax (15%,22%,30%, 35%) • Municipal permit • Unique Simplified regime (RUS)(USD 20.00 monthly) • Construction permit • Tariffs (4%,7%,11%,20%) • Advertising permit • Selective upon consumption(30%) • Street occupation permit • Estate Shares Tax (5%) • Rights to certificates • Municipal promotion Tax (2%) • Rights for weight and measurements control • CasinosTax (30%) • Cleansing tax • Machine games Tax (10%) • Park Tax • Coin machines (13%-80%) • Sanitation tax • Driving tax • Sanitary carnet Municipal Government • Fumigation services • Real estate tax Regulation contributions • Vehicles tax • Central Reserve Bank • Non-sport spectacles tax • Osinerg • Recreative vessels tax • SBS • Loteries Tax (10%) • Osiptel • AdvertisementsTax • Indecopi • Conasev • Sunass • Ositran 7 José L. Tapia-Rocha, General Director
- 8. Fact 7: STATISM PERSECUTES SMALL BUSINESSES (The Other Path people) Police operations at informal small trade center “Fronteras Unidas” “The Other Path” people hate police and politicians 8 José L. Tapia-Rocha, General Director
- 9. THE WAY OUT PROSPERITY Publica Libert. Congress Elimi. Bad Laws Product Opinion Movem. Majority Explot. Cultural change Institute change 9 José L. Tapia-Rocha, General Director
- 10. Thanks. Instituto de Libre Empresa TelFax: (51-1) 592-1175 Web: www.ileperu.org E-mail: info@ileperu.org 10 José L. Tapia-Rocha, General Director
Notas do Editor
- Small Regulations in Peru and some political lessons - Pacific Rim Policy Conference - May 24, 2007 - Honolulu, Hawaii, USA 20/05/12 Jose L. Tapia-Rocha, General Director, Instituto de Libre Empresa (Peru)