Peru’s Works for Taxes Scheme : An Innovative Solution to Accelerate Private Provision of Infrastructure Investment
Created in Peru in 2008, Works for Taxes is an innovative approach to accelerating infrastructureinvestment. It allows private firms to “pay” their income taxes in advance through the execution ofpublic works projects. By accepting infrastructure p...
| Main Author: | |
|---|---|
| Format: | Brief |
| Language: | English |
| Published: |
International Finance Corporation, Washington, DC
2018
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/163871532527022459/Peru-s-works-for-taxes-scheme-an-innovative-solution-to-accelerate-private-provision-of-infrastructure-investment http://hdl.handle.net/10986/30381 |
| Summary: | Created in Peru in 2008, Works for Taxes
is an innovative approach to accelerating
infrastructureinvestment. It allows private firms to “pay”
their income taxes in advance through the execution ofpublic
works projects. By accepting infrastructure projects in lieu
of future taxes, national, regional, and local governments
can forego mobilization of public funds and reduce the
burden on government budgets, as the private sector assumes
the upfront costs and management of new infrastructure
projects. The mechanism’s success derives from its ability
to align public and private sector incentives for better
quality projects and more efficient use of funds. Works for
Taxes has great potential for replication in other emerging
market countries with similar obstacles to infrastructure investment. |
|---|