171. Taxation in Paraguay: Marginalization of small-scale farming
- Author:
- Déborah Itriago
- Publication Date:
- 05-2012
- Content Type:
- Working Paper
- Institution:
- Oxfam Publishing
- Abstract:
- Paraguay's tax system is insufficient to provide the resource base to eradicate poverty in the country, and has done little or nothing to achieve a more equal distribution of income and wealth. Two major taxation reforms over the last decade have done little to alleviate the fiscal injustice that is generated partly by the low tax reciprocity of the soy agribusiness – Paraguay's main export crop. Meanwhile, programmes to support small- scale farming receive a level of public financing accounting for just 5 per cent of public expenditure. With one of the highest levels of unequal land ownership in the world, labour informality at very high levels and poor environmental regulation of soy producers, the livelihoods and ecosystems of Paraguay's small-scale producers are at risk. There are serious loopholes in Paraguay's tax system that must be addressed in order to deliver a fairer, progressive taxation system that will allow the country to meet its social objectives.
- Topic:
- Agriculture, Environment, International Trade and Finance, and Poverty
- Political Geography:
- Latin America