Small business regulations in Perú and some political problems

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  • 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)
  • Small business regulations in Perú and some political problems

    1. 1. Small business regulations in Perúand some political lessonsPacific Rim Policy Conference, May 24, 2007Honolulu, Hawaii Instituto de Libre Empresa (ILE) Tel/Fax (51-1) 273-4183 www.ileperu.org info@ileperu.org
    2. 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. 3. Fact 2: Small business suffers legislative hiperinflation3 José L. Tapia-Rocha, General Director
    4. 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 Perú4 José L. Tapia-Rocha, General Director
    5. 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. 6. Fact 5: STATISM CREATES NON INTENDED CONSEQUENCES6 José L. Tapia-Rocha, General Director
    7. 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 • Ositran7 José L. Tapia-Rocha, General Director
    8. 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 politicians8 José L. Tapia-Rocha, General Director
    9. 9. THE WAY OUT PROSPERITY Publica Libert. Congress Elimi. Bad Laws Product Opinion Movem. Majority Explot. Cultural change Institute change9 José L. Tapia-Rocha, General Director
    10. 10. Thanks. Instituto de Libre Empresa TelFax: (51-1) 592-1175 Web: www.ileperu.org E-mail: info@ileperu.org10 José L. Tapia-Rocha, General Director

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