Chilean opposition senator Araya announces lack of trust in government during tax reform negotiations
Ключевые моменты
- Chilean Treasury Minister Jorge Quiroz submitted a last-minute proposal to reduce the corporate tax rate to 22 percent, contrary to the reached consensus.
- PPD Senator Pedro Araya announced that due to a loss of trust, he would conduct written negotiations with Minister Alvarado instead of Minister Quiroz.
- Araya presented conditions for continuing negotiations, including a reduction in the special fuel tax and using previous gains as a baseline.
- The decisive process for the mega-reform vote in the Senate will end on Wednesday.
В цифрах
In Chile, Treasury Minister Jorge Quiroz's last-minute introduction of a provision to reduce the corporate tax rate from 23 percent to 22 percent, outside the tax reform agreement reached with the opposition, created a crisis. PPD Senator Pedro Araya stated that the government broke its word, shaking confidence and undermining the foundation of the agreement.
Araya emphasized that he refused to meet with Treasury Minister Quiroz and that from now on, no step would be taken without a written guarantee. The senator also demanded a reduction in the special fuel tax to support middle- and low-income groups.
Outlining the conditions for continuing negotiations, Araya announced that Wednesday's vote in the Senado is the final deadline. Because the right wing holds 26 votes in the Senate, he argued that the opposition must remain at the negotiating table to mitigate the negative impacts of the reform.
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Часто задаваемые вопросы
- What caused the disagreement between the government and opposition senators?
- Treasury Minister Jorge Quiroz brought a proposal to reduce the corporate tax rate from 23 percent to 22 percent at the last minute, contrary to the previously reached tax reform consensus.
- What are the new negotiation conditions of Senator Pedro Araya?
- Araya stipulated that all proposals must now be submitted in writing with a clear timeline, and that a reduction in the special fuel tax for low- and middle-income citizens must be made.
- Why doesn't the opposition completely cut off negotiations?
- Because the right wing holds 26 votes in the Senate and has the possibility of passing any proposal they want, the opposition prefers to stay at the table to mitigate the negative impacts of the current reform.
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