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
Editor's Notes
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)