Tuesday, April 17, 2012

Reflections on Tax Day Deadline in Peru


Peru has a consumption tax. The citizens are only taxed on what they buy. The tax varies according to the product and the service. Most taxes are 18 percent to both the rich and the poor. There is no tax on lunch but 18% dinner when we eat out. Automobiles are 18% and our apartment is 10%. There are no exceptions. Everyone pays. No welfare from the government. You go it alone. Many children, teens and adults beg on the street to make a living. No one is filing his or her income taxes today in Peru.

The Peruvian dollar is the sole. The change rate is 2.67 to every American dollar. So $100 soles is worth $37.59. It cost us 4 soles to get to downtown Peru each way on two buses. That is 8 soles every day or $2.99. A taxi to the archives would be $40 soles each way. We have chosen the public transportation system and love it. We eat out a lot. $2.80 (the food is good) is the cheapest and we have had a $107 lunch at $40.22. That will buy us a very nice lunch. We love the Peruvian food. Many times when we eat a large lunch we do not eat dinner. I am sure that is why Bob and I have both lost 10 pounds each.

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