Lima - The measures adopted by the government will improve the income distribution among the population, as they are progressive and tend to reduce inequalities among the different social classes, said the Ministry of Economy and Finance (MEF).
According to the Economic Revitalization Bill, the
government’s initiatives favor the improvement of income distribution, which is
reflected on the reduction of Gini index, the most common income inequality
This way, the Gini index for taxpayers with an annual
gross income exceeding seven Tax Units falls from 0.3549 to 0.3545.
In addition, MEF highlights that without taxes, the
income inequality ratio can increase to 0.3892.
Along these lines, the ministry said the bill -expected
to be taken up by the Congress as soon as possible- reduces the tax rate paid
by most individuals.
“Furthermore, the reduction translates into incentives
for the formalization of workers,” the ministry stated.
This tax revision would not impact low-income families, since
the cost of the annual Basic Food Basket for a standard four-member family is
3.2 Tax Units.