President Santiago Peña signed on Friday a law eliminating the minimum 6% commission that airlines were required to pay on each ticket sold in Paraguay. The tax, established in 2005 by Tourism Law No. 2828, was levied on ticket fares and passed on to tourism service providers.
“I signed the law that eliminates a 6% tax burden that airlines paid on each ticket in Paraguay. A measure that reduces operating costs and translates into more affordable fares for our compatriots,” Peña wrote on his social media.
The signing comes amid new negotiations between the government and Brazilian airline Gol to establish the long-sought direct connection between Asunción and Miami, United States. Nelson Mendoza, president of the National Directorate of Civil Aviation (Dinac), confirmed that the company contacted the agency again last week. “Hopefully it is the continuation of a path that began with ups and downs,” he said.
Paraguay’s ambassador to Washington, Gustavo Leite, revealed that the government offered $5 million in subsidies to American Airlines in October 2025, along with fixed support for four weekly frequencies, but the proposal was not accepted. Leite cited the case of Air Europa as an example of temporary financial support for new routes until they become profitable.
In Congress, the elimination of the commission sparked debates. Senator Juan Carlos “Nano” Galaverna (ANR) argued that the original rule hurt the country’s competitiveness and became unsustainable with the digitalization of sales. Critics pointed out that the historical norm benefited specific tourism sectors.
With the elimination of the tax, the government expects to reduce airlines’ operating costs and, consequently, lower ticket prices for Paraguayans. The actual impact, however, will depend on competition and each airline’s pricing policy.