Paraguay’s national tax authority has announced a year-on-year increase in revenue for the first six months of 2026, indicating steady growth despite a challenging final month of the period. The Dirección Nacional de Ingresos Tributarios (DNIT), the national tax revenue authority, registered a cumulative collection of ₲21,731,046 million (approximately US$3.586 billion) between January and June.
This figure represents a 1.8% rise when compared to the same period in 2025. Consequently, this growth translated into an additional ₲383,141 million (approximately US$63.2 million) for the state coffers, providing a positive outlook on the country’s fiscal performance for the first half of the year.
The cumulative result demonstrates a resilient economic landscape contributing to the national budget. The consistent collection over the six-month period highlights underlying stability in key economic sectors, which have supported the overall positive trend. This sustained performance is crucial for funding public services and government initiatives throughout the year, with the additional revenue providing a welcome boost to national finances.
Paraguay tax revenue: A mixed performance in June
However, the data for the month of June presented a contrasting picture. At the close of the month, total cash collections reached ₲2,988,126 million (approximately US$493 million). This represented a year-on-year variation of -5.9% compared to June 2025. In absolute terms, this amounted to a negative variation of ₲187,254 million (approximately US$30.90 million). This monthly downturn suggests that while the overall semi-annual trend is positive, specific economic factors influenced performance at the end of the second quarter.
A closer examination of the June figures reveals a tale of two distinct components within the tax system: internal taxes and customs duties. While domestic economic activity led to strong collections, external factors significantly impacted revenue generated from international trade. This divergence underscores the different pressures affecting various parts of the Paraguayan economy.
Strong domestic tax collection buoys results
Revenue from internal taxes provided a significant boost, generating ₲1,703,468 million in June. This represented a notable year-on-year expansion of 6.1%. The strong performance in this area was largely attributed to the collection of Value Added Tax (VAT). Key contributions to VAT revenue came from several vital sectors of the economy. These included the commerce, electricity and water, and business services sectors, among others. The growth in VAT collection suggests robust consumer spending and business activity within the country during the month.
This positive performance in domestic tax collection effectively offset some of the weaker results seen elsewhere, demonstrating the importance of a diversified revenue base. The health of these domestic sectors points to resilient internal demand, which serves as a critical engine for the national economy and a reliable source of fiscal income for the government.
Currency appreciation impacts customs revenue
In stark contrast, the collection of customs duties experienced a significant decline. Revenue from customs taxes totalled ₲1,284,658 million in June, marking a year-on-year variation of -18.2%. According to the DNIT report, this considerable drop was primarily a result of the appreciation of the local currency, the guaraní. The report noted that in June, the guaraní appreciated by 21.9% against other major currencies used in international trade.
This strengthening of the guaraní had a direct and immediate effect on tax collection at the border. The appreciation reduced the taxable base of imported goods, when expressed in the local currency, by 20.9%. As a direct consequence of this smaller taxable value, the effective revenue collected from import duties decreased substantially.
Also read: Paraguay’s DNIT Forecasts 8% Tax Revenue Growth For Second Half 2026.
