Paraguay’s Ministry of Foreign Affairs (MRE) issued a press release on Thursday informing that it had received the official document from the Brazilian government officially increasing the quota of purchases to US$500.
This is Administrative Act (Portaria) No. 601, by which the Ministry of Economy of Brazil decided that, from January 1, 2020, will increase to $500 the quota of purchases of goods, with exemption from taxes, for travelers coming from abroad, who enter Brazilian territory by land, river or lake.
It should be noted that by a similar provision of the Brazilian authorities dating from 2010, the limit of purchases was reduced to 300 dollars.
The official report of the Paraguayan Ministry of Foreign Affairs highlights that the official measure was agreed by the presidents of Paraguay, Mario Abdo Benítez, and Brazil, Jair Bolsonaro, in October this year.
It emphasizes that it will benefit not only border trade and tourism, but will also have effects on employment and other derived activities in Paraguayan border towns such as Ciudad del Este (Alto Paraná), Salto del Guairá (Canindeyú), Pedro Juan Caballero (Amambay), and other parts of the country.
It is important to point out that Ciudad del Este, due to its strategic location in the triple border, is considered the main pole of commercial tourism in the country and the region, but in recent years has been experiencing significant declines due to the regional situation.
Therefore, the Brazilian Government’s decision will help reactivate commercial activity in the area and will contribute to the dynamization of the Paraguayan economy and the region, said economic analysts.