Senator Blanca Ovelar proposes tobacco tax to fund healthcare

Senator Blanca Margarita Ovelar de Duarte has reintroduced a legislative proposal in the Paraguayan Senate to implement a specific tax on tobacco products. The initiative aims to generate approximately US$700 million in revenue to fund various healthcare needs, including addressing salary increase demands from medical professionals currently on strike.

The proposal suggests a specific tariff of G. 2,342 per pack of 20 cigarettes, which is equivalent to 2% of the current minimum wage. This tax would apply to both domestically produced and imported tobacco products, effectively transferring the cost to the consumer. Ovelar emphasized the necessity of finding new revenue streams to support the state health system during a period of financial constraints and labor unrest.