The administration of José Antonio Kast has launched a legislative offensive to secure support from opposition sectors, aiming to protect its massive 'Reconstruction' bill. The initiative, which has yet to be formally introduced for processing, includes approximately 40 measures covering areas such as tax adjustments, permitting reform, and disaster relief.
The Executive branch is looking to win over votes from groups such as the PPD, DC, and PDG, though it faces staunch resistance from left-wing forces, including the PS, PC, and Frente Amplio. The opposition is already showing signs of unity in its intent to reject the corporate tax cuts included in the package.
Tensions over tax reform
Minister of the Presidency José García and Undersecretary Constanza Castillo are scheduled to meet this Tuesday with Deputies Raúl Soto and Carlos Bianchi of the PPD-Independent group. During this meeting, the lawmakers are expected to raise demands regarding tax debt for SMEs and relief for the middle class.
Deputy Raúl Soto warned that reducing the corporate tax rate from 27% to 23% represents a "red line." “We believe it is a mistake for the government to insist on sending a package of more than forty very different measures as a single unit, as it will only put the entire package at risk,” Soto noted.
Similarly, Deputy Priscilla Castillo, a member of the Finance Committee, criticized the proposal to reduce the tax burden on large taxpayers. “We believe that decreasing taxes for large corporations is a terrible signal from the government given the crisis we are facing,” the DC lawmaker stated.
Official efforts have also targeted the Party of the People (PDG). Although parliamentary leader Juan Manuel Valenzuela has not received a formal invitation, advisors from the Ministry of Finance have reached out to the party's leader, Franco Parisi, to explore potential areas of agreement on economic matters.
