ALERT - REGULATORY
Congress delegates powers to the Executive Branch to legislate on economic reactivation
On Tuesday, February 28, 2023, Law 31696 (“Law”) was published in the Official Gazette “El Peruano”, by means of which the Congress of the Republic approves to delegate to the Executive Branch the power to legislate in matters of economic reactivation and modernization of the management of the State.
Among the main matters subject to delegation, we highlight the following:
- In matters of economic impulse for economic reaction.
Public Investment:
- Establish special provisions until December 2024 for:
(i) Authorize urban development and building licenses.
(ii) Authorize measures related to environmental certification and information required in environmental studies for public investment projects.
(iii) Establish provisions that enable local governments to enter into agreements with special public investment projects so that they may execute their investments.
Economic Management:
- Establish various provisions to promote the development of the National Sustainable Infrastructure Plan for Competitiveness and other investment projects, as well as establish measures for the implementation of operation and maintenance activities of the infrastructure developed under the Comprehensive Plan for Reconstruction with Change.
- Modify the regulations that regulate the Promotion of Private Investment through Public-Private Partnerships and Projects in Assets, in order to optimize the procedure, evaluation and support of the budgetary capacity for the development of projects.
- Modify various regulations in order to expedite the acquisition of land and imposition of easements for the development of public and private investment projects.
Taxation:
- Modify Article 26 of the Income Tax Law, on income from alleged interest. Also, to extend the validity of the exemptions established in Article 19 of said law.
- Amend the General Sales Tax and Selective Consumption Tax Law in order to consider as exports the sale of metal made by mining producers in favor of national jewelry manufacturers for export.
- Exempt from taxes the import of goods for the Lima and Callao Electric Mass Transport System Project.
Public Procurement:
- Authorize the use of the guarantee fund as an alternative means to guarantee contracts, as well as certain contractual modifications of contracts signed within the framework of the National Supply System.
- Amend the State Procurement Law to regulate the scope and requirements for entering into State-to-State contracts.
- Regarding the modernization of State management
- Amend Law 27444, General Administrative Procedure Law (LPAG) in order to:
(i) Specify that the services and their requirements must be established in a substantive provision.
(ii) Add a definition of standardization.
(iii) Specify the competence of the Presidency of the Council of Ministers and of the entities involved in the promotion, elimination, simplification, standardization of procedures, as well as the possibility of establishing rules more favorable to the company.
- Establish provisions to strengthen the improvement of regulatory quality applicable to regulatory proposals made by the Executive Branch.
- Establish provisions to regulate the integral management of chemical substances.
- Modify the regulations related to the name and conformation of the administrative courts of the regulatory bodies.
- Expressly establish the competence of the National Superintendence of Sanitation Services on the analysis of competition conditions to regulate the markets of products and services derived from sanitation services; as well as to determine the type of regulation applicable in the cases in which the non-existence of competition conditions in such markets is noticed.
Finally, it is important to mention that this regulation empowers the Executive Power to legislate in the mentioned matters for a term of 90 calendar days as from the effective date of the Law, that is, until May 30, 2023.
For further information, please contact Verónica Sattler (vsattler@estudiorodrigo.com), Diana Briones (Dbriones@estudiorodrigo.com) and/or Sebastián Velarde (Svelarde@estudiorodrigo.com).
