Key facts
- Chile's Chamber of Deputies approved the majority of a major economic reform bill.
- The bill aims to boost investment by reducing the corporate tax rate from 27% to 23% and exempting new homes from VAT.
- A dispute over municipal compensation for seniors will be decided by a joint congressional committee.
- President José Antonio Kast hailed the bill's progress as a significant step for his administration.
- Opposition parties plan to challenge the bill in the Constitutional Court.
Chile's Chamber of Deputies has approved the majority of a significant economic reform bill, a key initiative of President José Antonio Kast's administration. The legislation, which aims to stimulate investment, reduce corporate taxes, and exempt new homes from VAT, now moves to a joint congressional committee to resolve a dispute over municipal compensation for seniors.
Senators had previously passed the bill with amendments, necessitating its return to the Chamber of Deputies. In a series of votes, lawmakers approved nearly all Senate changes, with the exception of the provision concerning exemptions for individuals over 65. This disagreement will be addressed by a mixed committee.
Key measures within the approved reform include a gradual decrease in the corporate tax rate from 27% to 23%, restrictions on new higher education institutions accessing free tuition, and provisions allowing private companies to receive economic compensation for project stoppages due to environmental issues.
President Kast lauded the advancement of the bill, calling it a crucial step for his government. The reform's passage comes at a time of economic slowdown in Chile, marked by a 0.5% contraction in GDP in the first quarter and a rising unemployment rate of 9.4%.
Finance Minister Jorge Quiroz expressed satisfaction, stating the bill would provide greater certainty for investors and enhance Chile's tax competitiveness. However, opposition lawmakers have announced their intention to file a constitutional challenge, arguing the reform primarily benefits the wealthy.