Tax reform
Chile's lower house approves corporate tax cuts in major reform bill
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Chile's Chamber of Deputies sent the government's major tax reform bill to the Senate after approving its core measures, including a gradual cut in the corporate tax rate from 27% to 23%.
Chile's Chamber of Deputies ended an eight-hour debate yesterday on the National Reconstruction Plan bill. The government-backed initiative aims to cut corporate taxes and provide investment certainty.
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The Party of the People confirmed on Sunday that it will deliver its 13 votes to approve the idea of legislating the megareform promoted by the government. The deal was revived after including the elimination of VAT on medicines and diapers in the miscellaneous law.
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.