Finance committee approves property tax relief for seniors

The Finance Committee of the Chamber of Deputies approved a bill that fully or partially reduces property tax payments for seniors, offset by increased contributions from Las Condes and Lo Barnechea to the Municipal Common Fund. Las Condes will raise its contribution to 70% on territorial taxes, while Lo Barnechea will contribute 65% in that area and 55% on commercial patents. Opposition criticized the measure as unfair for targeting only specific communes.

This afternoon, the Chamber floor received the bill approved by the Finance Committee, aimed at easing the tax burden on seniors through full or partial reductions in property taxes, a key territorial levy in Chile. The government initiative offsets this relief by increasing transfers from affluent communes to the Municipal Common Fund, which redistributes resources among municipalities.

Under the approved text, Las Condes will boost its contribution from 65% to 70% on territorial tax collections and maintain 65% on commercial patents. Lo Barnechea will join with 65% on territorial taxes and 55% on municipal patents, although the Ministry of Finance sought higher rates.

Opposition lawmakers voiced dissatisfaction, labeling the adjustment 'unfair' and limited to just two communes. Deputy Diego Schalper (RN) filed a constitutional reservation, deeming the levy 'unjust and unjustified'.

"We believe this project, which has a good intention to expand benefits for seniors, seeks financing through something unfair, as it applies only to certain communes," Schalper stated. He added they will file a request with the Constitutional Court to prevent 'manifestly unjust and disproportionate taxes from harming certain communes'.

The bill now proceeds to the full Chamber for final debate, amid discussions on fiscal equity and support for vulnerable groups in Chile's municipal system.

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