The Government of Paraguay announced this Wednesday that it will extend until next June a series of tax benefits aimed at alleviating the impact of the pandemic in the gastronomy, tourism and commerce sectors.
Source: EFE
This was announced this Wednesday at a press conference by the Minister of Finance, Óscar Llamosas, who indicated that President Mario Abdo Benítez signed two decrees for this purpose.
The measures are aimed at the sectors that “recovered the longest” from the effects of the pandemic, said the official, and stressed that they seek to contribute to their recovery “being much stronger than what is taking place to date.”
Specifically, the deputy minister of the Undersecretary of State for Taxation, Óscar Orué, explained that the two presidential decrees extend the 50% reduction in Value Added Tax (VAT) for the gastronomy, events, tourism and hotel sectors.
By decision of the Executive, these sectors pay a VAT of 5% compared to the 10% set prior to the appearance of covid-19.
In addition, the reduction to half of the VAT payment for commercial rentals is maintained.
The validity of the discount on the selective consumption tax for alcoholic beverages and perfumes, which are in great demand in border areas, is also extended. This tax is applied to products not considered essential.
The tax reliefs came into force on August 1, 2020 and were valid until tomorrow, March 31.
Orué anticipated that, as of July 1, the rates stipulated before the pandemic will be restored.
