Kast appreciates progress in mega-reform and hopes that any offensive against the TC will be resolved quickly

President José Antonio Kast expressed satisfaction with the progress of the major tax reform initiative during a press conference held early Thursday morning at the School of Infantry in San Bernardo. The reform, which aims to boost competitiveness and attract investment, was approved in the Senate with a narrow margin of 26 votes in favor and 24 against. Kast emphasized the government’s commitment to making changes that would help restore economic stability and create more jobs. Kast highlighted the urgent need to address high unemployment rates and the prevalence of informal employment in Chile. He argued that these issues stem primarily from a lack of investment, stating that without increased investment, there will be no improvement in job creation or working conditions. The president reiterated his belief that the tax reform will play a crucial role in attracting more investment into the country. The reform has now entered its third constitutional stage in the Chamber of Deputies. Kast expressed confidence that the lower house would approve the measure with a larger majority than the Senate. However, he acknowledged that opposition lawmakers might challenge aspects of the reform before the Constitutional Court (TC). Despite this potential legal hurdle, Kast stated that the government expects the court to resolve any disputes quickly and efficiently. He further clarified that the administration does not believe any part of the reform violates constitutional principles. Kast criticized the state for failing to provide adequate support to entrepreneurs and small businesses, emphasizing that the government must act with greater urgency to foster economic growth. In addition to the tax reform, Kast praised the collaboration among several key ministers, José García Rumintot of Segpres, Claudio Alvarado of the Interior and Segegob, and Jorge Quiroz of Finance, in reaching agreements with various interest groups, particularly municipalities. The president thanked mayors for their input, which contributed significantly to shaping the reform. A notable component of the reform involves addressing concerns raised by the Association of Chilean Mayors (ACHM) regarding the Municipal Common Fund. This issue arose due to worries over reduced revenue stemming from exemptions granted to seniors aged 65 and older on their primary residence property taxes. To address these concerns, the Ministry of Finance introduced a new provision in Article 33 of the bill, which outlines mechanisms for compensating municipalities affected by such exemptions. Claudio Alvarado noted that mayors consistently advocated for full compensation for the loss of revenue caused by these exemptions. The inclusion of this amendment reflects efforts to balance fiscal responsibilities while ensuring local governments receive appropriate support. As the reform moves forward through the legislative process, attention will remain focused on how it is received both domestically and internationally. With the government aiming for swift passage and implementation, the coming weeks will be critical in determining whether the reform can overcome remaining obstacles and achieve its intended goals.