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🇵🇾 Paraguay /Economy & Trade

Maquila industry warns tax change could unsettle investors

From ABC Color · () Spanish

Translated from Spanish and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Ongoing story
  • Paraguay’s maquila sector is concerned about reports of a possible increase in its single tax from 1% to 3%, despite the absence of an official proposal.
  • Cemap President Jorge Bunchicoff said even discussing such a change could undermine the predictability and legal certainty investors expect.
  • Maquila exports reached $1.309 billion in 2025, and the sector warns companies could reconsider the regime if its tax burden tripled.

Paraguay’s maquila industry is alarmed not only by the possibility of a higher tax, but by the signal that even discussing the change could send to investors. The sector operates under a single tax of 1%, and reports have circulated that it could rise to 3%.

Óscar Orué, director of the National Directorate of Tax Revenues, told local media that no official proposal exists to make the increase. Jorge Bunchicoff, president of the Chamber of Maquila Companies of Paraguay, said he was “almost certain that there is a misunderstanding,” arguing that Orué understands the regime’s benefits and its importance in attracting investment.

almost certain that there is a misunderstanding

· Jorge BunchicoffThe Cemap president responded to reports of a possible increase in the maquila tax.

Bunchicoff also said Orué is “committed” to the government’s objectives and recognizes the benefits maquila brings to Paraguay. For that reason, he said he did not believe a decision would be taken that damaged the country’s credibility.

committed

· Jorge BunchicoffBunchicoff described tax chief Óscar Orué’s commitment to the government’s objectives.

Still, the industry leader warned that raising the levy from 1% to 3% would not be a minor adjustment. It would triple the tax burden on a regime designed to attract investment, create formal jobs and increase exports. Maquila shipments reached $1.309 billion by December 2025, according to the Vice Ministry of Industry.

“Such a measure could lead many companies to consider whether it would be more convenient to leave maquila and move to the general regime,” Bunchicoff warned. He said Paraguay competes with other countries for investment, relying on stability, predictability and legal certainty as key advantages.

Such a measure could lead many companies to consider whether it would be more convenient to leave maquila and move to the general regime

· Jorge BunchicoffHe warned that tripling the tax could prompt companies to abandon the maquila regime.
About this summary

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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