OREANDA-NEWS. The five-year plan announced by Peru's President Kuczynski Godard seeks to address issues in the economy, internal security, anticorruption, sanitation and corporate restructuring, according to Fitch Ratings' report: "What Investors Want to Know: Peru's New Administration - President Introduces Five-Year Agenda."

"President Kuczynski Godard has set the bar for his administration with a commitment to complete his first five points agenda within five years," said Josseline Jenssen, Director at Fitch Ratings.

"Among his five targets, structural tax changes and encouraging investment have been key discussion points in Fitch's recent meetings with investors."

Proposed structural tax changes are intended to expand the taxable income base and minimize tax evasion, especially within Peru's informal black market for goods. Specifics include VAT reduction by 1 percentage point to 17% in 2017, an increase in the profit tax by 2 percentage points to 30%, and repatriating tax revenue from funds held abroad by Peruvian residents.

The plan also calls for reactivating delayed public and private investments, improving tax collection measures to boost economic growth, and standardizing and simplifying administrative procedures for public and private investments.

Implementing the agenda may be challenging given that the Peruvians for Change party does not enjoy a majority in Congress, though Fitch believes they will ultimately be successful.