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Paraguay: Tax developments in response of COVID-19

General Information

This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).

The content will be updated regularly. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.

Date accurate as of: 29 April 2020

  • The government has lowered VAT on medical supplies to 5 percent and eliminated import tariffs on them.  
  • Since early March, the central bank has lowered the policy rate by 275 basis points, to 1.25 percent. 
  • The interest rate for the central bank’s overnight liquidity facility window has also been reduced, by 200 basis points, from 4.5 percent to 2.5 percent. 
  • The Central Bank has also reduced the minimum reserve requirements on domestic and foreign currency deposits, freeing up $959 million in the process for banks to make new loans.