Paraguay’s DNIT reported a 9.1% year-over-year increase in tax revenue for January, collecting ₲ 3.19 trillion ($405 million), exceeding expectations significantly. The increase is attributed to both customs and internal taxes, benefitting from technology and management reforms. The Central Bank reports an annual inflation of 3.8% and predicts 3.5% for 2025, highlighting price fluctuations in key goods.
Paraguay’s National Directorate of Tax Revenues (DNIT) reported on Tuesday that revenue collection in January surpassed expectations with a 9.1% year-over-year increase. The DNIT recorded ₲ 3.19 trillion (approximately US$ 405 million), exceeding the previous year’s collection by US$ 33.9 million. The DNIT Director, Óscar Orué, emphasized that they had projected only a 7% increase in the budget but exceeded expectations significantly.
Orué noted that the collection was comprised of 45% customs taxes and 55% internal taxes, reflecting a predominance of indirect taxes. He pointed out that the agency achieved 16 consecutive months of revenue growth without any deficits due to advancements in technology, skilled personnel, strengthened control mechanisms, and support from President Santiago Peña.
The previous December’s strong performance contributed to heightened collection levels in January, particularly in trade and financial intermediation sectors. In total, the DNIT closed 2024 with a record collection of ₲ 38.9 trillion, a 20.6% increase from 2023. Since its establishment in August 2023, the DNIT has raised ₲ 6.66 trillion (nearly US$ 948 million) through enhanced customs control and improved inter-agency collaboration.
The Central Bank of Paraguay (BCP) reported that inflation for January was recorded at 1%, with an annual rate of 3.8% for 2024, aiming for 3.5% in 2025. The Consumer Price Index saw fluctuations due to significant changes in prices, including a 24% increase in vegetable prices and a decrease of 8.5% in fresh fruits, leading to an overall increase of 11% amongst these categories. Meat prices also rose by 1.5% in January, reflecting a 12.4% year-on-year increase. Core inflation, which excludes volatile food and energy categories, rose by 0.5% in January, resulting in an annual change of 3.4%.
This article discusses the robust performance of Paraguay’s tax collection efforts overseen by the DNIT, which showcased a remarkable increase in revenues amidst effective fiscal strategies. Understanding these tax dynamics provides insights into Paraguay’s fiscal health and economic management, highlighting the importance of technology and administrative efficiency in revenue collection. Additionally, the impact of inflation on the overall economy is significant, affecting consumers and businesses alike.
In summary, Paraguay’s tax revenues have shown notable growth exceeding initial projections, partly due to the effective implementation of advanced methods and solid governmental support. The revenue trajectory indicates a promising outlook for the fiscal year, alongside a relatively stable inflation rate. Monitoring these trends will be critical for future economic policies and financial stability in Paraguay.
Original Source: en.mercopress.com
