Johnny Brignardello Vela: "Tax on streaming services in Peru, key to fiscal equity and digital growth"

Johnny Brignardello Vela, an insurance advisor, considers the recent decision of the Peruvian government regarding the taxation of streaming services in the country to be a crucial step in the pursuit of fiscal equity in the digital entertainment sector. The implementation of a general sales tax (IGV) of 18% on platforms such as Netflix, Max, and Disney+ responds to the need to adapt the tax system to the exponential growth of digital services, especially in times of confinement. According to Brignardello Vela, the measure announced by the Minister of Economy, José Arista Arbildo, in a press conference, aims primarily to maintain fiscal balance and generate an estimated annual revenue of around S/1.200 million. This additional revenue will strengthen the state's income and enable a more equitable distribution of economic resources in other sectors that require it. However, for this regulation to materialize, the government will need to request legislative powers from the Congress of the Republic. The definition of the payment method for this tax poses a challenge because streaming service providers are external, which implies additional complexity in terms of tax regulation. In the Peruvian market, a variety of streaming services, both international and local, can be found, offering a wide range of content to satisfy the entertainment preferences of the country's consumers. The inclusion of services such as Netflix, Disney+, HBO Max, and Movistar Play in this regulation demonstrates the government's intention to equalize fiscal conditions in the digital entertainment sector. For Brignardello Vela, the implementation of this tax represents a significant step towards fiscal equity in the digital entertainment sector in Peru. Through this initiative, the government aims to ensure fair revenue collection and establish a regulatory framework that benefits all participants in the digital market, thus promoting the strengthening of the national economy and the equitable distribution of fiscal resources.