President José Antonio Kast's government presented its National Reconstruction Project to Congress, featuring about 40 measures to boost growth, including a corporate tax cut from 27% to 23% and tax reintegration. Ministers toured regions on Friday to defend the bill, as OTIC and IMF warn of labor and fiscal risks. A poll shows 54% believe Congress should approve it.
President José Antonio Kast outlined the plan in a national address, stating: “no llegamos aquí para repetir el ciclo anterior, llegamos para romperlo”. The initiative targets 4% GDP growth, fiscal balance, and 6.5% unemployment, funded by spending cuts and a broader tax base.
Ministers including Jorge Quiroz (Finance), Claudio Alvarado (Interior), and Mara Sedini (Spokesperson) defended the project in regions like Valparaíso, Los Lagos, and Arica. Sedini confirmed a university gratuidad limit to 12 years post-high school, based on a technical body, though "conversable". Alvarado denied internal contradictions.
The OTIC of the Chilean Chamber of Construction warned that eliminating the Sence tax franchise risks feasibility due to skilled labor shortages, facing US$51 billion in mining and US$40 billion annually in construction. Quiroz countered that the franchise yields poor results and abuses.
The IMF, via Dora Iakova, cautioned that permanent tax cuts must be offset to keep debt below 45% of GDP; a mission will visit Santiago. A Descifra poll shows 49% general agreement, but 63% find measures insufficient; 52% prioritize formal employment incentives.
Opposition shows splits, with DC opening to the idea of legislating despite TC threats.
