Mega-reform: After PPD threat and La Moneda order, Quiroz withdraws amendment

Chile's government abruptly withdrew proposed amendments to a sweeping tax reform bill late Friday, following intense pressure from the PPD party and a directive from the presidential palace. The last-minute changes, introduced in the early morning, sought to deepen the reduction of the corporate tax rate for large companies, lowering it from 23% to 22%.

This maneuver triggered an immediate crisis with PPD senators, who had previously agreed with the government on a phased tax stability plan. The senators accused the executive branch of acting in "bad faith," declaring the recent pact with the Ministry of Finance null and void. They argued that the agreement was based on a clear and non-negotiable premise of a 1.5% surcharge on the existing tax regime, maintaining the corporate tax at 23%.

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What we discussed with the Ministry of Finance had a clear, explicit, and non-negotiable basis: a 1.5% surcharge on the current tax regime, with a corporate tax of 23%. By lowering the rate to 22% today, the executive branch moved the goalposts in secret and liquidated the agreement it had signed.

"What we discussed with the Ministry of Finance had a clear, explicit, and non-negotiable basis: a 1.5% surcharge on the current tax regime, with a corporate tax of 23%. By lowering the rate to 22% today, the executive branch moved the goalposts in secret and liquidated the agreement it had signed," stated senators Ricardo Celis, Pedro Araya, and Loreto Carvajal in a joint statement. The senators further criticized the government, asserting, "Here it has been demonstrated what kind of government we are dealing with: a dogmatic one, incapable of const..."

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Here it has been demonstrated what kind of government we are dealing with: a dogmatic one, incapable of const...