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Weekly Report - 19 December 2006

PERU: Garcí­a's limited powers to reform tax system

It will not be able to create new taxes nor put up existing ones but the government last week won from congress, after a heated debate, the right to "reform" the tax system. The final text of the bill, which awards the executive 90 days to modify and streamline the existing tax system, was approved by 56 votes to 36 on 14 December, with the ruling Partido Aprista Peruano (PAP) once again relying on the conservative Unidad Nacional (UN) and the Fujimoristas for support.

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