Paraguayan Goverment to Implement New Tax on Electronics as of July 2011

By Rodrigo Aguirre

The Paraguayan government has enacted a presidential decree which is enforce as of July 13, 2011 to implement a tax on imported electronic products (0,50%). The tax is being severely criticized by the private sector, who consider the tax is an unnecessary burden on Paraguayan consumers and very difficult to enforce.

The coalition of importers in Paraguay has requested the Ministry of Industry and Commerce the suspension of the presidential decree for 90 days, in order to have an adjustment period. The tax on imported electronic goods would also raise the costs importers have to pay to Paraguayan Customs.

The tax on electronic goods is a result of intense lobbying by several copyright owners as a way to compensate for the Intellectual Property infringement that is being caused by the massive importation of electronic goods into Paraguay.