Municipal Taxes as Instruments for Value Capture in Perú

This article describes the overall Peruvian policy on municipalities and their legal mechanisms for the recovery of local government investments (the Betterment Levy and the Special Assessment on Public Works). The Betterment Levy Program in the Municipality of Lima (1990-1993) is analyzed and it is concluded that the application of these instruments is viable, especially in lower income communities. There is more resistance among middle and upper income sectors.