Overview

• APP’s spokesperson Eduardo Salhuana formally asked Congress’s senior official Giovanni Forno to withdraw Project 12793/2025-CR, ending its legislative path.
• The initiative by Congressman Luis Cordero Jon Tay sought to modify Article 37(d) of the Income Tax law to classify extortion payouts as deductible extraordinary losses.
• The draft required a notarized sworn declaration with fingerprint and supporting evidence, empowered SUNAT to verify claims, and threatened penalties for false information.
• Tax specialists argued the scheme was unworkable because deductible expenses typically need invoices and bank records that extortion payments lack.
• Opposition lawmakers and former ministers warned the measure risked normalizing crime, enabling tax evasion, and harming Peru’s image, while commentators noted current law already allows proven extraordinary losses via judicial findings.