Optimistic For Peru

May 2006 | Industry Forecast

At the time of the 2004 mid-year ministerial changes, Toledo promised a 13% increase in wages from US$118 to US$133 per month. This, given the fiscal deficit targets under the latest IMF Stand-by agreement (1.9% of GDP in 2003 and 1.5% in 2004), left him no choice but to introduce new taxes. The Impuesto a las Transacciones Financieras or ITF was a clear signal in that direction, complemented by a 1 percentage point increase in the IGV (or sales) tax, to 19%. The ITF is a new and heavily opposed tax on financial transactions (at 0.15% of all cash movements

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