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Kast urges Senate to approve mega-reform, says citizens 'want change'
🇵🇾 Paraguay /Elections & Politics

Kast urges Senate to approve mega-reform, says citizens 'want change'

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Chilean President José Antonio Kast urged the Senate to approve his economic and tax reform package.
  • Kast stated that voters demonstrated a desire for change in the December elections.
  • The reform, which includes corporate tax cuts and tax invariability for large investments, faces opposition from the left and warnings from fiscal bodies.

Chilean President José Antonio Kast has implored the Senate to approve his sweeping economic and tax reform bill, asserting that citizens clearly signaled their desire for change at the ballot box last December. The bill, considered the far-right leader's flagship initiative, is set for a crucial vote in the upper house, where no clear majority exists.

recognize that the citizenry wants a change in investment matters, and above all, in security.

— José Antonio KastThe President urged senators to acknowledge the public's desire for change.

Kast appealed to senators to acknowledge the public's demand for change, particularly in investment and security, regardless of their personal political leanings. He advocated for the bill's general approval, paving the way for article-by-article debate. The 'Reconstruction and Economic and Social Development Bill' previously passed the Chamber of Deputies on May 20, with support from the ruling party and the populist Partido de la Gente.

Key measures within the reform include a reduction in the corporate tax rate from 27% to 23% and a guarantee of tax stability for major investments. The bill also proposes a temporary VAT exemption on new housing sales, the elimination of property tax for first-time homeowners over 65, and a 12-month window for repatriating capital from abroad with a special tax.

What we are calling for is that the law to legislate be approved and that we then go voting article by article.

— José Antonio KastKast explained his preferred process for approving the reform bill.

Kast argued that these measures differ from recent policies and have proven successful elsewhere, contrasting them with what he described as a failed approach over the past decade. However, the left-wing opposition contends the reform primarily benefits the wealthy and has raised constitutional concerns, filing several reservations of unconstitutionality. Independent fiscal bodies, like the Autonomous Fiscal Council, and the International Monetary Fund (IMF) have also cautioned about potential risks to fiscal targets and the possibility that growth may not offset reduced revenue.

If someone tells us that there is another formula to generate work, investment, let them put it on the table, because in the last 10 years that has not happened. We are living the consequences of a policy that (...) I believe failed.

— José Antonio KastKast defended his reform by criticizing past economic policies.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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