Value added tax (VAT) of 18 per cent comprising a two per cent of municipal promotion tax is levied on the duty paid value of most imports. Fitch Ratings Agency has said it expects the administration of Pedro Pablo Kuczynski to cut the VAT to 17 per cent in 2017, with future reductions toward 15 per cent conditional on revenue performance. Goods exempt from VAT include agricultural products, certain minerals and fuels, medicines and items for personal use.
- Compensatory import surtax is levied on certain imports at varying rates.
- Luxury taxes apply to certain goods such as alcoholic beverages.
- Selective consumption tax, at rates varying between 10 per cent and 30 per cent, is assessed on the CIF value plus the ad-valorem (Incoterms 1990) of luxury and other specified goods.