The International Monetary Fund earlier this year said Peru needed to significantly reduce the tax exemptions that are expected to cost the treasury about 3.624 billion soles ($1=PEN3.5735) next year.

Peruvian officials have said they need to lift the tax exemptions to boost revenues, but that has run into strong resistance, particularly in the Amazon region.

"There are small groups in certain regions that are benefitting from the tax exemptions, but not the great part of the population," Silva Ruete said.

Speaking to Congress Friday, Silva Ruete said that the government would negotiate with the new regional governments about which tax exemptions to remove.

The 25 new regional governments are scheduled to start work from January next year, with funding from the central government.

When asked about prospects for growth, Silva Ruete was also positive.

The government's statistics agency said that gross domestic product rose 7.3% in September over the same month last year, although the agency also said that its methodology was flawed and it wouldn't stand by that number.

"I think in the next few months (growth) will be even better," Silva Ruete said.