Regulatory News


Five manufacturers of cigarettes from Paraguay filed a law suit against Decree 5445, in which President Fernando Lugo established new values ​​for tax on the product. The average increase in taxes exceeds 300%. The new tax will significantly raise the value of the Paraguayan cigarettes, attacking even more the extensive smuggling of the product to Brazil.

Sector executives are calling for a suspension of the effects of the Presidential decree, saying the measure is unconstitutional because it should be decided by Congress. The Paraguayan Court has not ruled on the manufacturers’ appeal.

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