Finance Minister Jorge Quiroz admitted before the Finance Committee that the 'Miscelánea' Law does not guarantee the creation of new jobs. According to elmostrador.cl, the Secretary acknowledged that tax incentives for employment might serve more as a containment measure to prevent layoffs rather than as a driver for new hiring.
This statement drew immediate criticism from the Frente Amplio and Socialist Party, which questioned the lack of certainty in the bill and pointed to potential benefits for large corporations. The session also highlighted a rift with the Partido de la Gente (PDG), following errors found in revenue figures and disputes regarding taxes on small and medium-sized enterprises (SMEs).
Parliamentary Tension and Opposition Pressure
Tensions between La Moneda and the PDG escalated after Franco Parisi accused Minister Claudio Alvarado of ignoring previous agreements. The PDG leader stated that the Government failed to uphold the commitment to maintain the SME tax at 12.5%, limiting the deal to the VAT refund on medicines and diapers. The party warned that its 13 deputies may vote against the bill if these commitments are not met.
Meanwhile, Deputy Johannes Kaiser increased pressure on the Executive following the agreement with the PDG. Representing the National Libertarian Party, Kaiser asserted that his eight-vote bloc cannot be taken for granted, demanding concessions after having acted as a “friendly opposition.” Kaiser also distanced himself from the Government on issues regarding security and public spending.
In other developments, the Comptroller General of the Republic has launched an ex officio investigation at La Moneda to probe payments made to the Office of the President-Elect following José Antonio Kast's victory. The inquiry seeks to verify the legality of disbursements made between January 9 and March 10 for logistics and communications work.
Finally, the General Treasury of the Republic has begun executing levies and bank account and property seizures against CAE (State-Guaranteed Student Loan) debtors with monthly incomes exceeding $5 million. This measure affects 1,340 cases that failed to regularize their status following notifications sent in April.
