Chile's Chamber of Deputies approved the centerpiece of President José Antonio Kast's sweeping economic and tax reform on Tuesday, though a final article remains pending before the bill can be signed into law.
The legislation gradually cuts the corporate tax rate from 27% to 23%, exempts home purchases from value-added tax for one year, offers tax benefits for repatriated capital, and freezes tax conditions for large investments exceeding $350 million for up to 20 years. Most articles cleared the 78-vote threshold with support from the ruling coalition, several deputies from the Party of the People, and some backing from the Christian Democrats. The outstanding article concerns compensation for municipalities affected by a property-tax exemption for seniors.
Left-wing lawmakers said they will file three challenges with the Constitutional Tribunal targeting fiscal provisions, including the tax freeze for major investors. The overhaul is a centerpiece of Kast's agenda since taking office in March, as the economy shrank 0.5% in the first quarter and unemployment rose to 9.4%.