Bolivia is poised for a dramatic economic transformation as President Rodrigo Paz Pereira’s administration unveils a sweeping package of reforms aimed at tackling corruption, stimulating investment, and modernizing the country’s financial landscape. In a series of bold announcements made in early December 2025, the government outlined plans to eliminate tariffs on imported technology, scrap a range of low-yield taxes—including the controversial gambling tax—and overhaul the customs and energy sectors. These changes, officials say, are designed to lower consumer costs, fight pervasive smuggling, and attract much-needed domestic and foreign investment.
Speaking at the close of a meeting with the Multisectoral Committee in Oruro on December 3, President Paz declared, “Everything that is not produced in Bolivia in terms of technology, as we have committed to, will have zero tariffs, comrades. Officially announced in Oruro for the whole country, you will no longer have to smuggle in phones or computers.” According to the president, imported technology products such as cell phones and computers will be exempt from tariffs, provided that importers formally register these goods to allow authorities to monitor volumes. “You have to register to know how many cell phones come in and how many cell phones go out, but they can’t charge you, and that will be a rule that we are sending to Parliament... it has to be made legal,” Paz explained, as reported by national media outlets.
The president’s rhetoric was uncompromising when it came to entrenched corruption at the country’s borders. Paz reiterated a campaign promise to eliminate the National Customs Service (Aduana Nacional), which he denounced as a breeding ground for bureaucracy and bribery. “It won’t happen overnight, but remember what I’m saying: Customs is going to die because it has to be an institution for the people... but we’re going to do it right, so as not to create new corrupt officials,” he assured. He went further, highlighting the cost of formal business in Bolivia: “Being formal in Bolivia is expensive. You go through customs and they ask you for bribes... That’s over. That product is yours and no one will be able to take it away from you.”
These policy changes come at a crucial juncture for Bolivia’s economy. The once-lucrative gas sector is in decline, and efforts to industrialize the country’s vast lithium reserves have stalled. “Today there is no gas, there is no lithium. What do we have in Bolivia? We have Bolivian women and men who can produce, who work with quinoa, who work with their hands, who, if given the opportunity to produce, will grow,” Paz stated, underscoring his administration’s focus on boosting local manufacturing and entrepreneurship as engines for short-term national income.
The government’s reformist zeal extends well beyond tariffs on technology. In a move that’s generating significant buzz among investors and business leaders, President Paz’s administration is pushing to eliminate the gambling tax, alongside several other low-yield taxes such as levies on financial transfers, wealth, and business promotions. According to government sources cited by SCCG Management, these taxes together account for less than 1% of national revenue but create disproportionate administrative burdens and discourage economic activity. The aim is clear: simplify the tax system, reduce capital flight, and make Bolivia a more attractive destination for investment.
Supporters of the gambling tax elimination argue that the measure sends a strong signal to both domestic and foreign investors that Bolivia is serious about repositioning itself within the regional economy. Lowering taxes for sectors like entertainment, hospitality, and leisure could reduce operational costs and provide the regulatory certainty needed for expansion and modernization. The administration is also preparing to cut public spending by about 30% in the upcoming State Budget revision, a change Economy Minister José Gabriel Espinoza says will be reflected in the 2026 General State Budget bill, set to be presented on December 8. This bill will include the tariff and tax structure changes, as well as the projected 30% reduction in the fiscal deficit.
“The reforms are expected to influence sectors like entertainment, hospitality, and leisure by lowering operational costs and improving regulatory clarity,” according to SCCG Management. The government’s broader strategy is to attract both domestic and foreign investment, rebuild investor trust, and promote job creation and reinvestment. Officials are candid about the challenges: foreign direct investment in 2025 was underwhelming, and reversing years of capital outflow will require more than just tax tweaks. Still, the administration sees the elimination of low-impact, high-friction taxes as essential groundwork for long-term stabilization.
Meanwhile, the fight against corruption is taking center stage in the energy sector. In the week leading up to December 4, Bolivian police conducted raids at the offices of the state-owned natural gas company YPFB. According to reports from the Associated Press, authorities uncovered multimillion-dollar corruption schemes involving subsidized fuel smuggling and irregular contracts. The newly appointed president of YPFB, Yussef Akly, estimated that diverted subsidized fuel—often sold to neighboring countries or the black market—costs the Bolivian economy around $1 billion each year.
For President Paz, rooting out corruption at YPFB is more than just a law enforcement exercise; it’s part of a broader plan to open up the company to foreign investment, reverse declining output, and shift fuel imports and distribution to the private sector. The ongoing investigations, officials say, provide an opportunity to “clean house” and restore confidence in one of Bolivia’s most important state-owned enterprises.
Looking ahead, the government is set to present a new tax reduction package to the Legislative Assembly next week, focused on easing the burden on the majority of the population. The hope is that by making formal business less costly and reducing red tape, entrepreneurs and established firms alike will be incentivized to invest, hire, and innovate. If successful, these reforms could mark a turning point for Bolivia, moving the country away from complex, punitive taxation and toward a more agile, investment-driven economic model.
Of course, the road ahead is anything but certain. Lawmakers will debate the merits of each proposal, and the ultimate impact will depend on how businesses, investors, and ordinary Bolivians respond. But one thing is clear: President Paz’s administration is betting big on reform, transparency, and the entrepreneurial spirit of Bolivians to chart a new course for the nation’s economy.
With a combination of targeted tax cuts, anti-corruption drives, and a focus on local production, Bolivia is entering a period of significant change—one that could redefine its role in the region and offer new opportunities for growth and prosperity.