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By Wang X.-H., Wen Zh.-X.

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Legislative proposals must clearly define targeted beneficiaries of the tax benefits which should not exceed six years. Possible extension of tax benefits up to additional three years is subject to an in-depth evaluation which has to be conducted one year before the expiration of the corresponding measure. Such evaluation should consider fiscal costs and assess the investment and employment impacts of tax benefits on the sectors and areas concerned. A report must be submitted to Congress on any tax exemptions, incentives or benefits granted by various ministries which will subsist after March 2009.

PERU’S POLICY FRAMEWORK FOR INVESTMENT as possible candidates for simplification which could reduce the costs for companies by some 20%. It has also prepared and made publicly available several publications and guides on different trade and trade facilitation aspects targeting in especially SMEs, for instance on marketing and financing in international trade. How actively is the government increasing investment opportunities through market-expanding international trade agreements and through the implementation of WTO agreements?

The Ministry of Labour is responsible for enforcing child labour laws and its inspectors have the legal authority to investigate reports of illegal child labour practices. Over the last 5 years, the Ministry of Labour carried out approximately 4 000 inspections per year. Firms found guilty of violating child labour laws may be fined and their operations suspended. OECD INVESTMENT POLICY REVIEWS: PERU – ISBN 978-92-64-05374-8 – © OECD 2008 47 2. PERU’S POLICY FRAMEWORK FOR INVESTMENT The Constitution states that workers should receive a “just and sufficient” wage to be determined by the government in consultation with labour and business representatives and “adequate protection against arbitrary dismissal”.

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