Asunción, Agencia IP.- President Santiago Peña, during a visit to an auto parts industry, anticipates that Paraguay’s achievement in securing a retroactive tax exemption for auto parts companies producing within its borders and selling to the Brazilian market will lead to significant new investments in the sector.
«This is a very positive signal that will quickly generate an impact on new investments in the auto parts industry and create new jobs,» stated the Paraguayan President following the official announcement of Brazil’s decision.
The President noted that with the decision made through a presidential decree signed by President Luis Inacio «Lula» Da Silva, the retroactive charges for auto parts manufacturing companies, amounting to nearly $100 million, have been eliminated.
Peña expressed confidence that this decision removes a metaphorical sword hanging over the auto parts sector, making it challenging for any investments. He believes that, following this decision, a positive effect will be seen in establishing new investments in the industry.
According to the Paraguayan Association of Auto Parts Industries, the country is home to the world’s top five companies in auto wiring, and the sector has generated exports of over $250 million in recent years.