Senate approval sought for property tax compensation mechanism

The Chilean government is actively working to secure the necessary 26 votes in the Senate for the final component of its Reconstruction Law. This crucial point involves establishing a mechanism to compensate municipalities for the exemption of property taxes on the primary residences of individuals over 65 years old.

Senators Sergio Gahona and Gustavo Sanhueza of the UDI party have indicated a willingness to support the proposal, but with specific conditions. They demand that the government first address the outstanding debts municipalities owe to their healthcare and education workers. This linkage highlights the interconnectedness of fiscal policy and social services.

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It would be inappropriate for senators from Coquimbo to approve the Government's proposal.

Senator Matías Walker, representing the Demócratas movement, is another key parliamentarian whose vote is contingent on further negotiations. He emphasized that discussions with the Executive branch are ongoing, aiming to "guarantee the resources for the reconstruction of the Coquimbo Region and the Huasco Province." Conversations also include Senator Yasna Provoste, exploring avenues to "unite forces to give certainty."

The government faces a tight deadline, as the decision on this compensation mechanism is scheduled for Tuesday. The outcome will determine the fate of the broader Reconstruction Law, which is vital for post-disaster recovery efforts.

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We are in conversations also with Senator Yasna Provoste to see how to unite forces to give certainties