Taxes

Law No. 6380 of 2019, on Modernization and Simplification of the National Tax System, exempts petroleum-derived fuels, including biofuels, from Value-added Tax (VAT). However, VAT at rate of 10% is applicable to rectified ethanol.

Paraguay’s Ministry of Finance Decree No. 4693, of December 29, 2015, and Decree No. 3109 of 2019, by which the Excise Tax or Selective Consumption Tax (ISC) is regulated details the last update of the fuel tax regime in Paraguay as follows:

While ethanol is subj