Congressional economy commission defends its project

(Peru.com) The president of the congressional economy commission, Jesus Alvarado, disagreed with the opinions given by the Confiep and the Treasury vice-minister, Kurt Burneo, regarding his proposal that the State capitalizes the tax liabilities of companies. On the subject he said the only thing this proposal aims to is to revitalize the economy.

"I'm giving another option to revitalize the economy and help companies. This does not mean that the State will be again a shareholder and that the old schemes will be restored", he said.

Alvarado said with his proposal the State would capitalize debts amounting to around $300 million.

However, the lawmaker said the companies whose debts would be capitalized should be selected, since the State would not convert the shares to immediately sell them, because what it is wanted is that they (the companies) could be refloated.

"If the business is not attractive, then the company will not be included in this program, therefore, there will not be capitalization. We are not affecting either the tax collection because the tax liability will still be there. The possibility of recovery, which is remote, will take place provided that more jobs are created", he said.

Finally, Alvarado recommended that once the debts are capitalized, Cofide could be in charge of the portfolio of companies that do meet the necessary conditions to be economically viable.