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last mo.

Extortion and Tax Threats Push Peru’s Neighborhood Shops to the Brink

Soaring protection costs plus the risk that the executive could raise the selective consumption tax threaten formal small retailers with closures and lost customers.

La infraestructura pública es decisiva para ampliar la capacidad productiva de la economía, y los números ya encienden la alarma. (Foto: Andina)
Inseguridad: El 45% de peruanos sabe de negocios que han cerrado o restringido sus actividades
La Asociación de Bodegueras del Perú pide que la fijación del Impuesto Selectivo al Consumo vuelva al Congreso y exige mayor respaldo del Estado frente a la ola de extorsiones. Foto: Estefany Valladares.
Conferencia de prensa sobre la presentación del Sexto reporte del Observatorio del Crimen y la Violencia, presentado y elaborado por el Banco de Ideas Credicorp, el BCP y CHS Alternativo. (Foto: César Campos / GEC).

Overview

  • Business groups reported in mid-June that the Association of Bodegueros said about 99% of its members have faced extortion, a problem that many shopkeepers do not report for fear of retaliation.
  • Surveys cited by the Observatorio del Crimen y la Violencia show 45% of Peruvians know a local business that closed or limited activity because of crime, with the effect strongest in Lima.
  • Mypes and bodegas say they now spend on cameras, gates and guards and sometimes pay criminal 'cupos', creating overcosts that some estimate reach up to S/7,000 per month.
  • After the Ministry of Economy and Finance denied an ISC increase, gremios pressed Congress to pass PL 536 so changes to the Impuesto Selectivo al Consumo would require parliamentary approval.
  • Experts warn that continued weak police and judicial follow-through and the spread of extortion via WhatsApp and Facebook could deepen informality, fuel contraband and erode household incomes across neighborhoods.