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2 clusters · 5 sources · 2 days · First seen · Last updated

Paraguayan legislative tax reform proposals

Overview

In late August 2026, Paraguayan legislators introduced various proposals to increase state revenue to address fiscal constraints and salary demands from striking medical professionals and Social Security Institute staff.

Initially, Senator Blanca Margarita Ovelar de Duarte proposed a specific tax on both domestic and imported tobacco products. This measure aimed to generate approximately US$700 million to fund healthcare needs. The proposal suggested a tariff of G. 2,342 per 20-pack of cigarettes, roughly 2% of the minimum wage.

Subsequently, Senator Silvio ‘Beto’ Ovelar proposed increasing the corporate income tax (IRE) from 10% to 14% as part of the 2027 National General Budget. This increase is estimated to generate between USD 500 million and USD 600 million annually. Discussions have also expanded to include potential increases to selective consumption taxes on alcohol and sugary drinks, though some congressional leadership has expressed opposition to tax hikes.

Entities

Cadep · Paraguay · Basilio Bachi Núñez · Silvio Beto Ovelar · Blanca Margarita Ovelar de Duarte

Timeline

  1. 17 days ago

    [POLITICS] 3 sources
    Senator Ovelar proposes raising Paraguay corporate tax to USD 600 million

    Senator Silvio Beto Ovelar has proposed raising Paraguay's corporate income tax from 10% to 14% to generate up to USD 600 million for state needs, including medical salary demands.

  2. 19 days ago

    [POLITICS] 3 sources
    Senator Blanca Ovelar proposes tobacco tax to fund healthcare

    Senator Blanca Ovelar has proposed a tobacco tax in Paraguay aimed at raising US$700 million to fund healthcare and medical salary increases.

Sources

diarioparaguayo.com · elnacional.com.py · independiente.com.py · ultimahora.com · wochenblatt.cc