(Bloomberg) -- Chile’s finance minister said the government’s broadened tax reform push was well received by one of the country’s most influential business organizations, as crucial talks continue on the legislation.
The administration’s “fiscal pact” not only focuses on how funds from a reform would be used, but also considers points such as how public spending can be made more efficient and tools to evaluate the impact from any policy changes, Mario Marcel told reporters Tuesday after a meeting with business chamber CPC.
“This fiscal pact goes beyond tax reform,” Marcel said. “What we are doing is, on the basis of this design, we are identifying points where there’s more agreement between different groups.”
Chile President Gabriel Boric said his administration will present a new tax reform bill to the Senate at the end of next month after the lower house of Congress unexpectedly rejected the previous proposal in March. The government is counting on the overhaul to finance a progressive social agenda. Marcel said part of the talks now focus on what parts of the proposal that was shot down will be removed, modified or kept in tact.
Read more: Chile’s Boric Outlines Fresh Tax Reform Push for Social Agenda
Boric’s administration is aware that it has to be flexible, and that it will not be able to include all the points that it wants in the revamped tax legislation, Marcel said.
The government also sees tax reform as an opportunity to reduce uncertainty and create favorable investment conditions, Marcel said. Talks will continue both with the CPC and other organizations, he added.
©2023 Bloomberg L.P.
BNN Bloomberg Picks
Carbon tax, trade barriers: experts on how to reduce food costs
Variable rate mortgage holders on the hook for thousands in interest: report
Half of Canadians don't think they will be ever buy a home: survey
How can mortgage holders prepare for higher rates at renewal?
Energy prices are driving inflation. What will central banks do?
70-year amortization periods not realistic: OSFI