Paraguay’s tax revenue recorded a strong increase in March 2026, reflecting improved economic activity and steady fiscal performance. Data released by the National Directorate of Tax Revenue (DNIT) shows that total collections rose by 10.4% year-on-year, contributing to a positive first quarter overall.
Internal taxes lead March expansion
Revenue collection reached ₲3,444,34 billion (approximately US$529.5 million) in March, compared to ₲3,119,70 billion (approximately US$479.5 million) in the same month of 2025. This represents an absolute increase of ₲324,62 billion (approximately US$50 million), highlighting stronger inflows to the public treasury.
Internal taxes played a key role in this growth. Collections in this category totalled ₲2,009,87 billion (approximately US$309 million), marking a 12% increase compared to ₲1,794,70 billion (approximately US$276.1 million) recorded a year earlier. According to the DNIT, this performance was driven by higher activity in sectors such as trade, construction, agriculture, household services, and utilities, including electricity and water.
March is also a significant month for tax collection, as it includes annual settlements for personal and corporate income taxes. This seasonal factor typically boosts revenue figures and supports overall fiscal performance.
Paraguay’s tax revenue: Customs revenue grows
Customs revenue also showed a positive year-on-year result in March, increasing by 8.3% to ₲1,434,47 billion (approximately US$220.6 million). This growth was supported by higher import volumes in key categories such as fuels, vehicles, capital goods, electronics, and agrochemicals.
However, in cumulative terms, customs revenue declined by 4.4% during the first quarter. This points to fluctuations in external trade activity. Factors include exchange rate movements and changes in import patterns earlier in the year.
Positive outlook for the first quarter
Between January and March 2026, total tax revenue reached ₲9,310,23 billion (approximately US$1,432.3 million), representing a 2.9% increase compared to the same period in 2025. In absolute terms, this amounts to an additional ₲266,30 billion (approximately US$41 million) collected by the state.
Overall, the figures point to a gradual strengthening of Paraguay’s tax revenue. Growth in domestic economic sectors and sustained import demand continue to support revenue collection, despite some fluctuations in customs performance.
Paraguay’s strong revenue performance aligns with broader recognition of its fiscal framework. In fact, Paraguay’s Tax System is one of the best in Latin America, having been ranked the most competitive and neutral in the region for the second consecutive year in 2025. According to the Comprehensive Tax Index by the Adam Smith Center at Florida International University, Paraguay stands out for promoting investment while minimising economic distortions. This strong performance further enhances the country’s appeal to international investors.
