Paraguay’s National Directorate of Tax Revenue (DNIT) projects an increase of approximately 8% in tax revenues during the second half of 2026. This number is in a context marked by a gradual recovery in fiscal income after a more subdued performance at the beginning of the year.
DNIT Director Óscar Orué indicates that this projection is supported by a recent improvement in overall collection. This is mainly driven by stronger performance in domestic taxes, which have shown greater dynamism in recent months.
Recovery and growth
The recent rebound in tax revenues has helped reverse part of the slowdown recorded at the start of the year. This performance has strengthened official expectations for growth in the second half of the fiscal period. According to estimates, the DNIT projected 8% increase is the result of a combination of improved tax administration efficiency and a gradual recovery in domestic economic activity.
Revenue growth is being driven primarily by domestic taxes, which have performed better compared to trade-related revenues. In contrast, customs revenues have faced pressure due to exchange rate fluctuations. This type of revenue reduced the local currency value of imports. However, this effect has been partially offset by stronger domestic tax collection.
DNIT’s fiscal outlook for the second semester
The DNIT expect the second semester to maintain a sustained growth trend. The potential growth would improve the availability of fiscal resources for state obligations. The impact would be in areas such as infrastructure, healthcare, and other budgetary commitments. There is also expectation that statistical base effects, linked to lower comparative figures from the previous year, will contribute to a stronger year-on-year growth rate in the coming months.
Economic context and fiscal outlook
The recent performance of tax collection takes place in a context of relative economic stability, with domestic demand showing gradual signs of recovery. However, external factors such as exchange rate volatility continue to influence customs revenue performance.
With an expected growth of 8%, authorities maintain a moderately optimistic outlook for the remainder of the year. The DNIT is expecting continued improvement in revenue collection during the second semester. Additionally, the authorities expect a stronger contribution to overall fiscal stability.
Read more: Paraguay’s Tax Revenue Rises 10.4% In March 2026, Boosting First-Quarter Results.
