Opposition senators criticized President José Antonio Kast's National Reconstruction Plan, labeling it a 'hidden tax counter-reform' due to tax cuts that would defund the state by up to US$2.8 billion annually. In a tense La Moneda meeting, they warned against rollbacks on social rights. The bill is expected to enter Congress on April 1.
President José Antonio Kast announced the National Reconstruction Plan over the weekend, a package of 40 measures including up to $400 billion pesos to the Temporary Emergency Fund, elimination of VAT on housing for 12 months, waiver of property taxes for seniors, reduction of the first-category corporate tax from 27% to 23%, limits on university gratuity for those over 30, and strengthened collection of the State-Guaranteed Credit (CAE). The bill is set to enter Congress on April 1, per the executive. Opposition reacted swiftly with criticism. Senator Daniel Núñez (PC) called it a 'hidden tax counter-reform', stating the Treasury 'would stop receiving more than US$2.8 billion each year' and that it 'defunds the state structurally'. He added it 'increases inequality' and suggested splitting it for voting. Senator Juan Luis Castro (PS), after meeting Finance Minister Jorge Quiroz and Segpres Minister José García, said: 'we are not here to let people see their rights roll back' and 'it's hard to understand doing a tax reform to lower taxes, not raise them, in times of need'. He recalled that after the 2010 earthquake, Sebastián Piñera raised corporate taxes for three years. Senators like Diego Ibáñez (FA), Yasna Provoste (DC), and Iván Flores (DC) dubbed it 'opportunism' and a pretext to benefit companies while cutting gratuity. Provoste stated: 'Using a social emergency to advance tax benefits [...] is not reconstruction, it's opportunism'. On March 16, opposition bloc leaders—Castro (PS), Loreto Carvajal (PPD), Provoste (DC), Ibáñez (FA), and Claudia Pascual (PC)—met at La Moneda in a 'tense' session, demanding fiscal clarity and rejecting rollbacks on 40-hour week, gratuity, and MEPCO.
