With a US$30 million loan from the Inter-American Development Bank (IDB), Paraguay will promote the digital transformation of its tax and customs administration, so that taxpayers and companies benefit from better services.
The program will support the National Directorate of Tax Revenue (DNIT) to improve efficiency in the collection of national tax and customs revenues, and improve the quality of foreign trade and tax facilitation services.
The DNIT was established in 2023 with the aim of efficiently and effectively managing the internal tax and customs administration system, as well as promoting formalisation and social inclusion.
The project will improve processes and coordination between both areas by merging taxpayer databases and improving tax and customs risk management.
In the tax administration, online services for taxpayers will be expanded, pre-filled value-added tax returns will be offered to large and medium-sized taxpayers, and the use of electronic invoices in foreign trade operations will be promoted.
In customs administration, the IDB loan will support the reorganisation of customs processes and operations, the updating of the Customs Code, and the adoption of digital technologies to improve operations.
Part of this initiative will also fund the deployment of a strengthened technological architecture and improve cybersecurity, data storage and processing capabilities. This will enable the implementation of a robust analytics platform to improve tax compliance and reduce evasion.
It will also support the implementation of a comprehensive human talent management model and strengthen planning and management capabilities. In addition, it will improve employee training programs and strengthen the Higher Institute of Fiscal Studies (ISEF).
The project will benefit the Government of Paraguay, its institutions and the population in general, since the expected increase in tax revenue will increase the availability of resources to finance public policies aimed at accelerating growth and reducing poverty and inequality.
This is the first loan signed by DNIT with the IDB.
