83% of Paraguayans think taxes are poorly spent

A recent survey released by the Latinobarómetro organization reveals that 83% of Paraguayans believe taxes collected by the government are poorly spent. The poll, conducted between May and June, interviewed 1,200 people in the country as part of a broader study across 17 nations in the region. The information was originally published by the ABC Color newspaper.

Overview of tax collection and state efficiency

The study addresses tax morale at a time when the tax burden in the country remained at 11.2% of GDP in 2025, according to data from the Ministry of Economy and Finance (MEF). While former officials of the portfolio point out the need to increase collection and optimize spending, the current government maintains its position of not creating new taxes, betting on expanding the taxpayer base through formalization.

• 83% of the population does not trust the destination given to taxes collected by the treasury.
• The efficiency of government management received an average score of 4.1 on a scale up to 10.
• Informality in the non-agricultural sector reached 61.6% in the second quarter of 2026, according to INE.
• Public services such as hospitals (25%), justice (27%), and police (34%) register low approval ratings.

What this means for those who venture or live in the country

For Brazilians who invest, open companies, or manage businesses in Paraguay, the high rate of informality and distrust in state services help to understand the tax scenario and local market behavior. Although the tax burden is considered low compared to other countries in the region, the challenge of convincing workers and companies to formalize is directly linked to the perception of return in infrastructure and efficient public services.

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