(19 Sep 2013) A month after taking office, Paraguayan President Horacio Cartes, one of the richest men in one of the poorest countries in Latin America, says the wealthy must do more to combat poverty.
In an interview with The Associated Press on Wednesday, Cartes took aim at the 60 percent tax evasion that reigns in the country, praised a new 10 percent tax that will collect revenue from commodity profits for the first time, and pushed a new joint venture law that will force the government's corporate partners to dedicate part of their investments to social development.
"We have a tax burden that's around 13 percent. It's a shame that although we have that tax burden, there's a need to collect more," said Cartes. "Because with that tax burden, maybe 40 or 45 percent (of the people) do not pay, if we raise taxes, it would become more attractive not pay taxes," he said.
Cartes, 57, has built a family fortune dominating industries from banking to tobacco to soft drinks to football, but has had to defend it often against accusations that his family's fortune was fed by money laundering, cigarette smuggling and drug trafficking.
During the interview, Cartes also talked about the Paraguayan People's Army, a nationalist guerilla movement.
He said the guerillas had created "a state within a state" in the northern part of the country and that it was "the responsibility of the military" to take care of it.
Around 200 soldiers have been deployed to the northern departments of San Pedro and Concepcion.
Ahead of next week's United Nations General Assembly, Cartes also described how he'll show the world that Paraguay can be taken seriously now that he's in charge.
But Cartes task is full of hurdles ahead.
He inherited a government so bankrupt that doctors and teachers have not been paid.
Only 11 percent of his people have treated water to drink, and he has to buy his own fuel to travel anywhere.
When Cartes took office on 15 August, there was only one (m) million US dollars left in the government's coffers.
The country burned through a three (b) billion US dollars surplus by the time Fernando Lugo's presidency was cut short by impeachment last year.
Cartes also says he donates his 9,000 US dollars presidential salary to a charity for the terminally ill.
Cartes said during the presidential campaign that he sought the presidency to improve Paraguay's economy, fight poverty and attract more foreign investment.
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