Asunción, Agencia IP.- The Government has formalized a new tourism regime to boost commerce and promote healthy competition in the sector. Authorities and business associations highlighted this decree as a significant step towards formalization.
The announcement was made on Tuesday during a press conference at Mburuvicha Róga. The Executive Branch’s initiative seeks to inject more dynamism into shopping tourism, particularly in border cities associated with this sector, and to formalize the economy.
To this end, a series of tax rate reductions have been established, particularly concerning VAT, which is reduced to an effective rate of 1.25% under this new tourism regime.
Following the definition of the new Shopping Tourism Regime (RTC), which establishes tax incentives to make shopping tourism an economic driver in border cities, President Santiago Peña expressed on social media that they value «the participation of business associations in the construction of this new public policy that aims to increase competitiveness in this sector while establishing strict access mechanisms to the regime to continue formalizing our economy.»
«Our idea is also to reduce airport charges for imports, thus generating greater competitiveness for everything related to this regime. It is important to note that there are also stricter requirements for beneficiaries, especially to combat shell companies,» stated the National Director of Tax Revenue, Oscar Orúe.
He mentioned that the document establishes, among other points, a 1% advance on corporate income tax on the customs value at the time of import, as well as sales made by e-trading import companies, which will be subject to a 0.4% withholding as an advance on IRE and a VAT payment based on a taxable value of 7.5% at the time of import.
«We must also consider that the payment of compensatory remuneration rights for goods subject to the decree and imported under the tourism regime will be calculated on a taxable base, in this case, on a value of 50% of these goods, reducing airport charges. Regarding the timing, this is to avoid transfers,» he explained.
The national director emphasized that the idea is to provide greater dynamism to commerce by attracting more foreigners and promoting healthy competition in the sector.
«Dialogue is essential, and reaching consensus within dissent is fundamental to continue achieving greater competitiveness and economic and commercial development for our country,» he emphasized.
In turn, business associations highlighted that the decree represents a significant step towards formalizing border trade and an incentive for all those involved in the tourism regime.
«We must recognize that border tourism is important, as are local industry and commerce. We need to achieve that one regime does not interfere with the other,» said the President of the Paraguayan Industrial Union (UIP), Enrique Duarte.
Said Taigen, from the Chamber of Commerce of Ciudad del Este, appreciated the Executive’s willingness and emphasized that many actions can be undertaken with the National Directorate of Tax Revenue (DNIT).
«One sector alone cannot be successful for the economy; together, we can find an appropriate mechanism for everyone to benefit,» Taigen emphasized.