ASUNCION – The Finance Ministry established on Wednesday a commission of experts that includes representatives of the outgoing and incoming administrations to study Paraguay’s tax system and submit proposals to the new government that will take office on Aug. 15.
Finance Minister Lea Gimenez told reporters that the commission’s goal was to come up with “suggestions and proposals to modernize and simplify the tax system,” but she did not provide details about specific issues to be discussed by the body.
“We want to conduct an overall analysis of the tax system and of all tax incentives in the country,” Gimenez said. “We will look at the system as a whole because, and this is something we have repeated tirelessly, taxes cannot be tweaked in isolation, as if they were independent pieces.”
Paraguay needs to update its tax code since, despite some amendments, “the backbone of the tax system is the 1991 law,” Gimenez said.
The Technical, Economic and Tax Commission will follow the standards and recommendations of the Organization for Economic Cooperation and Development (OECD) and Latin America’s Finance Action Group (Gafilat).
The commission’s task is to submit a proposal for reforms, but it will be up to the next president, Mario Abdo Benitez, to submit it to Congress for debate.