In the reshuffle, Hans Flury, the second vice-president of the influential business confederation Confiep, gets Quijandría's old job. Confiep has been critical of the Toledo administration's short-termism. Fernando Rospigliosi will take over from Alberto Sanabria at the interior ministry, a post he held until June 2002, when he resigned after falling out with the government over the bungled attempt at privatising the electric companies Egasa and Egesur, which incited violent protests in the southeastern department of Arequipa.
Quijandría's first job is to preside over a wide ranging fiscal reform. The main change in the reform is likely to be a lowering of the value-added tax rate by one percentage point. The revenue lost will be made up by a new bank transaction tax of between 0.1% and 0.3%. The banking system made payments of 3.4bn soles last year (US$1bn). The government wants to raise the tax take from its current 12.5% of GDP.
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