Bolivia cuts import tariffs by 5% and caps electricity price hikes

President Rodrigo Paz Pereira signed Decree 5646, which reduces the general import duty (Gravamen Arancelario) by five percentage points across every tariff line. The measure takes effect on 6 July 2026 and runs until 31 December 2027, aiming to offset the impact of a flexible boliviano‑dollar exchange rate and lower costs for final consumers. Under the decree, a 40 % duty falls to 35 %, a 35 % duty to 30 %, and lower rates are trimmed accordingly, with some products reaching zero duty.

In a related move, Decree 5647 establishes a maximum 5 % monthly variation in electricity tariffs, raising the previous ceiling of 3 %. The regulation updates the 2003 and 2012 tariff framework, authorising the regulator to adjust stabilization factors when gas prices, inflation or the U.S. dollar exchange threaten the limit. It also creates individual stabilization funds for generators, transmitters and distributors operating in the National Interconnected System. The decree was published on 29 June 2026 and is intended to protect end‑users from abrupt bill spikes.