The head of the Paraguayan Importers Center (CIP), Iván Dumot, referred to smuggling ahead of the year-end holidays and explained that far from shrinking, there is a growing trend. He stated that according to estimates there would again be an upsurge in certain special categories.
Source: The Nation
“Far from shrinking, the problem continues to grow and once again there is a quite noticeable upsurge in certain special categories. To give an example, last week you wanted to go buy cider in Clorinda and there was no more cider”, he assured. Dumot added that this means that the product has already been fully purchased from stores located in Formosa and Clorinda.
VAT DEDUCTION
As to the deduction of 30% of the value added tax (VAT) mentioned that the project has a particularity, with a positive and negative side. “The effect of informalization is going to be less, but the problem of the Executive was with the policy of vetoing the bill and discussing it again takes a while, the business closes its activities in practically a month,” he asserted.
He stated that from the guild they will not accompany projects that reduce the collection of the treasury. “This project has a perspective that it will reduce treasury collections, but on the other hand it intends to start with the formalization. I believe that this measure of testing according to real results is the correct measure”, he commented.
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The representative asserted that it would also only be a palliative for a certain group of consumers, therefore, hardly move the needle to stop the smuggling. “Smuggling is going to continue to work in other channels, in the majority of the population, and the price difference is even widening in some cases,” he argued.
ROYAL AND SEVERE PUNISHMENTS
Recently, the president of the Paraguayan Chamber of Supermarkets (Capasu), Alberto Sborovsky, He argued that the great debt of the political class and the State is that in Paraguay real and severe punishments are not applied to smugglers, which is why this scourge transcends and greatly harms the formal working class of the country. “In Paraguay, being a smuggler is a fact that is not punished, that is the debt of the State with the business sector. Smuggling is not punished, it is the problem, that is why there is a lot of informality”, lamented the union representative, in contact with 1080 AM radio. This in relation to the position of the business sector, regarding the possibility of enacting the sanctioned bill on the deductibility of 100% of the value added tax (VAT)that is, in all purchases in supermarkets.
