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LatinNews Daily - 20 May 2019

In brief: Paraguay

* Gustavo Volpe, the new president of Paraguay’s private sector lobby Federación de la Producción, la Industria y el Comercio (Feprinco), has called for “critical and technical analysis to be maintained” with regard to the proposed tax reform, which the government unveiled on 9 May and is currently being considered by the senate. Feprinco said it agreed with the position adopted by international organisations like the International Monetary Fund (IMF) which is calling for the reform to widen the tax base. But the private sector lobby has also called on the government to consider postponing the date when the new reform would take effect due to the current slowdown of the domestic economy, which is still forecast to grow 4% in 2019 according to the latest (April 2019) estimate from the United Nations Economic Commission for Latin America & the Caribbean. The private sector lobby said that it broadly agrees with the legislative initiative but questions the government’s proposal to increase taxes such as selective consumption (excise) tax.