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Peru's nationalist parliamentary group has proposed legislation to support the sustainability of agricultural co-operatives.
The Peru Wins (Gana Perú) alliance is calling for additional support for agriculture in the current co-operative law to create a more favourable tax environment.
It suggests that co-operatives reporting annual profits lower than S/. 525,000 (approx. USD 200,000) will not need to report tax records. Distribution of profits to members will also not be taxed.
The legislation highlights that co-operatives "promote and sustain entrepreneurial development by providing jobs for workers, generating growth and helping to reduce poverty" and that the sector also creates social inclusion, social protection and promotion of communities.
In December, a special tax regime was created for agricultural co-operatives, which came into effect in January. This allows co-operatives to trade freely with other co-ops without attracting extra General Sales Tax (IGV) and also ensures distribution of surplus to members is not taxed. But this rule will only last for ten years and has not been adopted into the national co-operative law, which is now being proposed by Gana Perú.
The decision, which was discussed on the National Day of Co-operation on 14 December, was approved by 53 votes with one against, and 15 abstentions.
Photo: Leaders raising the flag of CONFENACOOP at the National Day of Co-operation, Lima, Peru.
