Paraguayan production guilds oppose proposed corporate tax hike

The Union of Production Guilds (UGP) has expressed opposition to a proposal by Senator Silvio Ovelar to increase the Corporate Income Tax (IRE) by 40% to fund salary demands in the medical sector and other areas. UGP President Héctor Cristaldo argued that instead of increasing tax pressure on productive sectors, the government should focus on the rationalization of public spending. He cited Inter-American Development Bank (IDB) estimates suggesting that public waste in Paraguay is approximately 4% of GDP, or roughly USD 2 billion, driven by corruption, mismanagement, and inefficiency.

In response to these fiscal concerns, Paraguay's Minister of Agriculture and Livestock, Carlos Giménez, reaffirmed the government's commitment to maintaining low taxes. Speaking at the launch of the 2026-2027 soybean planting season, Giménez stated that the administration does not intend to raise the tax burden on the productive sector, emphasizing the need to preserve conditions that favor investment and growth amidst regional economic volatility.