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Peruvian President Martin Vizcarra (on the left) with his new Minister of Finance and Economy Carlos Oliva

Peruvian Finance and Economy Minister David Tuesta resigns

Carlos Oliva is Peru’s new Minister of Finance and Economy

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Sunflower June 12, 2018

After just two months in office, Peruvian Minister of Finance and Economy, David Tuesta, resigned due to protests against the latest tax increases and discrepancies with Peruvian President Martin Vizcarra.

Last month the Peruvian government introduced a new law which significantly raised excise taxes on sodas, alcoholic beverages and cigarettes, but as well on fuels and new cars powered by diesel or gasoline – we reported in our article “Tax increase in Peru 2018”.

While initially this measure went unnoticed by the public, within a week of the announcement strong protests formed and striking workers in the transportation, construction, education and public sectors brought cities such as Arequipa, Cusco, Tacna and Puno in southern Peru to a halt. 

While Tuesta insisted on maintaining the new tax law, Peruvian President Vizcarra sought a dialog with the protesters and after making concessions could not only prevent the protests and strikes from spreading throughout the country, but ended them completely.

Vizcarra justified his bold move and shift in the Peruvian tax policy by stating that Peru’s economic growth shouldn’t be based on increasing taxes, but on focusing on investment and improving on tax collection; here especially unpaid corporate taxes. Tuesta could only step down.

So, after the President accepted Tuesta’s resignation, he appointed Carlos Oliva as new Peruvian Minister of Finance and Economy last Thursday.

Oliva is a Peruvian economist. He has a master’s degree in economy from the University of Georgetown, worked at the Inter-American Development Bank and was Vice-Minister of Finance and Economy during the government of Ollanta Humala between 2011 and 2015. Carlos Oliva as well was the Director of the Peruvian Banco de la Nacion and the Peruvian Central Reserve Bank.

Oliva is the fifth Finance and Economy in the past year.

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