Paraguay
Paraguayan lawmakers clashed over a tirzepatide tax and reopened the debate on tobacco and alcohol
The debate in the Chamber of Deputies exposed differences between the governing bloc and the opposition on the eve of the 2027 General Budget of the Nation. The discussion centered on new levies and the need to secure more resources.
The Chamber of Deputies of Paraguay once again put the tax debate at the center amid preparations for the 2027 General Budget of the Nation. According to Última Hora, the clash between the governing bloc and the opposition took place while bills linked to tirzepatide and tobacco were being analyzed, in a context marked by the search for funds in the face of the 3.9% deficit projected by the Ministry of Economy and Finance and wage demands from state unions.
Cartista lawmaker Carlos Godoy defended his proposal to apply a 5% tax on tirzepatide, which is currently exempt under Law 5372 on Diabetes Prevention. He argued that this benefit was intended for diabetes treatments, but that in practice it is also used for other purposes, such as weight loss in cases of obesity.
According to Última Hora, Godoy also argued that the Social Security Institute and the Ministry of Health already have the obligation to provide free diabetes medications. He also mentioned that Law 6380, in its article 90, sets a 5% tax on medicines and 10% on other products.
During his intervention, the lawmaker questioned pharmaceutical companies and laboratories over the prices of these medicines. According to his remarks, they are sold for about G. 603,000 already with a discount, even though they would leave the laboratories at G. 470,000, which in his view implies an increase of between 40% and 45% in the final price.
From the opposition, Johanna Ortega responded with irony to the proposal and suggested that there could be a conflict of interest, alluding to lawmakers who, she implied, would use tirzepatide. She then called for reopening the debate on the tobacco and alcohol tax that the opposition has been promoting for some time.
Governing-party lawmaker Hugo Meza backed Godoy and proposed reviewing specific taxes. He also lashed out at the laboratories and rejected reducing the debate to tobacco. In that line, he proposed discussing taxes on alcohol, sugary drinks and zero-rate medicines as well, with the idea of directing the revenue to health.
The opposition insisted that the main focus should be on tobacco. Ortega even asked to postpone the discussion until after the municipal elections to avoid suspicions about the timing chosen for the debate. Raúl Benítez supported that position, considered that the argument used for tirzepatide is similar to the one used for tobacco and said the medicine still requires a broader analysis because it is a new product on the market.
According to Última Hora, Benítez proposed an agreement so that both the tirzepatide tax and the tobacco tax would be 5%, although he doubted that the cartismo would support that solution.
The debate comes as various figures from the governing bloc and the tax area have been warning about the need to increase revenue. The Paraguayan outlet recalled that the head of the National Directorate of Tax Revenue, Óscar Orué, had already mentioned measures to raise an additional USD 120 million, and that cartista senator Silvio Ovelar warned that Congress will sooner or later have to discuss greater tax pressure to sustain public budgets.
Sources
About this note. Written by El Notero with the assistance of artificial intelligence, based on what was published by the cited outlet. El Notero did not conduct its own reporting on this event.
