Peru · LABOUR
Key Facts
- —What happened Congressman César Holguín presented a bill on 22 August 2026 to repeal Ley N.º 32434, the agro-export tax break.
- —How big a cut The law lets large agro-exporters pay 15% income tax instead of the general 29.5%, from 2026 to 2035.
- —The catch ‘Chlimper 2.0’ is a press nickname, not the official name; the law’s text never uses it.
- —Previous attempt Congresswomen Sigrid Bazán and Ruth Luque filed a similar repeal bill in September 2025, which did not advance.
- —What comes next No committee vote or debate is documented; Ley 32434 remains in force with its regulation approved in March 2026.
The bill targets a tax break for big agro-exporters, not the labour rules that set farm workers’ pay and hours.
A new bill seeks the Peru agrarian law repeal, targeting the tax break for large agro-exporters. Congressman César Holguín of the centrist Ahora Nación group presented the proposal on 22 August 2026.
What the Bill Does
However, the bill seeks the Peru agrarian law repeal, targeting Ley N. º 32434, nicknamed ‘Chlimper 2.0’.
That law lets big agro-exporters pay only 15% income tax. This rate applies to firms billing over S/8.4 million yearly, about US$2.51 million today.
Therefore, the Peru agrarian law repeal would scrap the whole law, not just parts of it. Holguín said: ‘Keeping our promise to the country, today we present a new bill.
‘ The bill repeals tax benefits granted to the big agro-industries. The sol figures were set in earlier years and are converted at today’s SUNAT rate.
However, the bill’s scope is strictly tax, not labour. However, the bill targets only the tax regime, not labour rules.
As a result, farm workers’ pay and conditions remain governed by separate laws.
Peru Agrarian Law Repeal Tax Break
In fact, under Ley 32434, large agro-exporters pay income tax at 15 percent instead of the general 29.5 percent. In addition, this is a significant reduction.
This reduced rate runs from 2026 to 2035. After that, from 2036, they would return to the normal rate like any other business.
Its official title runs to a full line of Spanish. It promises a productive, competitive and sustainable farm sector with social protection.
The 15% rate is half the general 29.5% corporate income tax. Meanwhile, the law’s official title is long and technical, but its effect is clear.
In addition, the reduced rate applies to firms billing over S/8.4 million, about US$2.51 million. Meanwhile, the law’s official title is long and technical.
Why It’s Called ‘Chlimper 2.0’
The nickname comes from the old agrarian promotion law, Ley 27360, linked to former minister José Chlimper. That law gave tax benefits to large agro-exporters, and the new one revives that logic.
However, ‘Chlimper 2.0’ is a press and political nickname, not the official name. It does not appear in the law’s text, Congress bulletins or ministry documents.
The nickname references the older Ley 27360, associated with José Chlimper. Still, the official text never uses this name.
Still, the nickname persists in press and political circles. However, it is not an official designation.
Labour Rules Stay Untouched
Meanwhile, the repeal bill does not touch farm workers’ labour rights. Those are set by a different law, Ley N.
º 31110, the agrarian labour regime, and the older Ley 27360. Therefore, the working day, pay, bonuses and health contributions remain as they are.
The bill only removes the tax benefit for big agro-exporters. Ley 31110 sets the working day, pay, and bonuses, not Ley 32434.
As a result, the repeal bill leaves those rules unchanged. In addition, the bill does not alter the working day, pay, or bonuses.
As a result, farm workers’ entitlements remain intact.
The Previous Attempt
This is not the first try. On 11 September 2025, congresswomen Sigrid Bazán and Ruth Luque presented a similar repeal bill.
Their proposal also sought to scrap Ley 32434 entirely. Support signatures came from Susel Paredes and Edgar Reymundo.
The 2025 bill also aimed to repeal the entire law, not just articles. However, that attempt did not advance further.
However, that 2025 bill also sought full repeal. Still, it did not advance further.
What the Law Actually Sets
Ley 32434 is a tax law, not a labour law. It sets the income tax rate for large agro-exporters, meaning those billing over S/8.4 million (US$2.51 million) a year.
Ley 31110 sets the agrarian labour regime. It includes an eight-hour day, 48-hour week, and bonuses of 16.66 percent of basic pay, plus CTS savings.
Moreover, this regime is distinct. The law defines large agro-exporters as those billing over S/8.4 million (US$2.51 million) a year.
The reduced tax rate applies only to them. Meanwhile, Ley 32434 sets only the tax rate for large agro-exporters.
In contrast, Ley 31110 governs labour conditions.
The Agro-Export Industry’s View
In addition, AGAP, the association of Peruvian agrarian producer guilds, argues the new law leaves labour rights untouched. It says the tax stability is needed to keep agro-export competitive and protect jobs.
ADEX, the exporters’ association, reported the approval of the law’s implementing regulation in March 2026, presenting it positively. No ADEX opinion on the law itself was found.
AGAP argues the law preserves labour rights and provides tax stability. However, ADEX only reported the regulation’s approval, not its own opinion.
However, ADEX only reported the regulation’s approval. Meanwhile, AGAP argues the law preserves labour rights.
Critics and Their Focus
Critics have long attacked the agrarian regime’s history, calling it a ‘temporary’ regime that keeps being extended. Their objections focus on precarious conditions and lower health contributions.
Union objections on the record belong to the earlier law, Ley 27360. Servindi set them out when that regime was extended.
Critics’ objections target the agrarian regime’s history, not the new law. Meanwhile, no union has issued a fresh statement on this bill.
Still, no union has issued a fresh statement on this bill. Meanwhile, their objections target the predecessor law’s history.
What Happens Next
So far, only the presentation of the bill has happened. No committee vote, plenary debate or approval is documented.
Therefore, Ley 32434 remains in force, and its implementing regulation was approved in March 2026. The repeal bill is just the start of a long process.
The bill’s presentation is the only documented step so far. Consequently, the law remains in force with its regulation approved.
In addition, the implementing regulation was approved in March 2026. However, the repeal bill remains only a proposal.
Frequently Asked Questions
What does the Peru agrarian law repeal bill target?
The bill targets Ley N. º 32434, which gives large agro-exporters a reduced income tax rate of 15% instead of the general 29.5%.
Is ‘Chlimper 2.0’ the official name of the law?
No, ‘Chlimper 2.0’ is a nickname used by the press and politicians. The official name is the long title about promoting productive transformation of the agrarian sector.
Does the repeal bill change farm workers’ pay or hours?
No, the bill only repeals a tax law. Labour rules like the eight-hour day, bonuses and health contributions are set by Ley N.
Has the law been repealed already?
No, only the presentation of the bill has occurred. Ley 32434 is still in force, and its implementing regulation was approved in March 2026.
Connected Coverage
Sources: La República; Prensa Latina; Salud con Lupa; Infobae Peru; Gestión; Servindi; CEPES; Agraria.pe; ADEX; Congress of Peru; Ministerio de Trabajo y Promoción del Empleo; SUNAT.
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