Paraguay decrees VAT reduction for the tourism sector
Today, Paraguayan President Mario Abdo Benítez signed the decree by which the value added tax falls from 10% to 5% for the events, tourism and gastronomy activities sectors
The Executive Branch released Decree 3,881 / 20 this Tuesday afternoon, which reduces the Value Added Tax (VAT) from 10% to 5% for the events, tourism and gastronomy activities sectors.
The list of beneficiaries includes companies that supply events, a sector that offers accommodation, activities of travel agencies and tour operators, explained the Deputy Minister of Taxation, Oscar Orué.
In addition, the commercial rental tax is reduced to 5% for these sectors, which as of this year had risen to 10% within the measures of a tax reform.
The measures will continue until June 2021 as a measure to give an incentive to these sectors that were affected by the quarantine and health emergency measures by COVID-19.
The announcement was accompanied by the Minister of Tourism, Sofía Montiel, who stressed that the measure was the result of a table set up between the public sector and representatives of the private sector in these areas, to respond to the different needs for one of the sectors most affected by the pandemic and for which an activity without restrictions is contemplated only in the long term.