Chilean government presented the tax reform project

The president of Chile, Gabriel Boric, announced a bill to carry out a tax reform in the country, which aims to advance tax justice, prevent abuses and achieve growth in social justice for Chileans.

Boric explained that the tax reform is focused on tax justice, avoiding abuses and seeking to ensure that Chile grows with justice. He also aspires to finance structural reforms and the development of social rights such as health and pensions.

The project proposes a “wealth tax” for people with assets greater than five million dollars, as well as raising royalties for mining activities, seeking an improvement in the social rights of Chileans.

The president stated: “This reform is in favor of greater equity, greater social cohesion and is not against anyone. It is for a better distribution of the wealth that we all generate and that will allow us social rights”.

Key areas of the tax reform

The project presented by the executive addresses four major areas, and they hope that once approved, it will allow tax collection of 4.3% of the country’s GDP. The initiatives will be focused on:

• Restructuring the income tax: For which the aim is to create a modern semi-dual system, which stimulates business investment and directly encourages actions aimed at increasing their productivity and simplifying the system as a whole.
• Reduction of tax exemptions: It is related to the set of measures that will make it possible to dispense with loopholes that facilitate misrepresentation, in addition to strengthening the capacity to combat tax evasion, facilitating tax compliance for taxpayers.
• A new mining royalty: Which will increase the income resulting from the exploitation of non-renewable resources, without discouraging investments and the development of the sector. This tax will support “the country’s productive diversification,” as well as financing regional governments for their investments in social infrastructure and productive development.
• Corrective taxes: Which will be used to “promote the preservation of the environment, reduce emissions, the development of a healthy life and balanced territorial development.

M. Rodríguez

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Source: finanzasdigital.com