"Decrease of 3.5% in tax collection raises doubts about the Peruvian economy."

Tax collection in Peru experienced a notable decrease of 3.5% during the month of July, marking the largest drop in the last 15 months. This decline raises questions about the economic health of the country and the effectiveness of the fiscal policies implemented to date. However, despite this overall downturn, there have been significant increases in certain specific taxes, especially those paid by workers. Luis Miguel Castilla, Minister of Economy, commented on the situation, stating that "we have taken a bit too long to implement counter-cyclical policies," referring to the need for quicker and more effective measures to mitigate the impact of the economic slowdown. Despite the drop in revenue, Castilla assured that "there is no need to panic over one data point" and dismissed claims that the "Peruvian miracle" has come to an end. On the other hand, the labor market presents a more encouraging picture. In the last quarter, 33,000 formal jobs and 195,600 informal jobs were created, indicating that the labor market continues to show signs of recovery. This trend was particularly evident in the coastal regions, northern and central highlands, as well as in the jungle, where improvements in employment opportunities were recorded. From a macroeconomic perspective, Peru's economy grew by 2.62% in June, and the Ministry of Economy and Finance (MEF) expects even better results for July. This growth translates into an increase of S/ 35.8 in income from work over the past 12 months, which is a positive sign for workers and their families. However, the drop in tax collection suggests that economic growth is not translating equally into the country's fiscal revenues. On another front, the National Superintendency of Labor Inspection (SUNAFIL) has announced its ambition to retain a portion of what it collects to cover its own operational costs. This measure raises questions about the sustainability of inspection and employment formalization policies in Peru, a critical issue in a country where informality remains one of the main problems in the labor market. SUNAFIL aims to formalize a total of 348,000 workers this year, an effort that underscores the importance of integrating more citizens into the formal employment system. To achieve this, it plans to increase its number of labor inspectors by 225, reaching a total of 1,000 inspectors by 2024. This effort is vital to combating informality and improving labor conditions in the country. To date, SUNAFIL has conducted 45,520 inspections and imposed a total of S/448,290,681 in fines in the first and second instances. These efforts indicate an active fight against labor informality, although the effectiveness of these actions remains to be seen, especially in a context where informality is a deeply rooted reality. It is evident that as Peru faces challenges in its tax collection, it must also address the issue of employment formalization. The country's ability to recover and maintain sustained growth will largely depend on its ability to balance the tax burden with the creation of formal jobs that benefit all Peruvians. In this context, it is crucial that both the government and the institutions responsible for inspection and employment formalization work in a coordinated manner. The implementation of effective counter-cyclical policies, as well as strengthening labor infrastructure, will be essential to ensure that economic growth is not just a temporary phenomenon, but translates into lasting benefits for the Peruvian population. Attention to these aspects will not only impact tax collection but will also contribute to the social and economic stability of the country.