“For us, the commitment to the fiscal rule is a firm commitment, but we must be clear that the tax reform is advancing. The vote in general has already passed in the Treasury Commission of the Chamber of Deputies and we are going to start discussing the project in detail with his instructions”, declared the Minister of Finance, Mario Marcel, who ratified his commitment to the tax reform precisely because of a matter of fiscal responsibility, since it is imperative to keep the deficit at bay that results from assuming new commitments in social matters without counting on permanent additional income.
Last Wednesday the indications for the tax reform were entered and, although the opposition rejected the idea of legislating, the minister hopes that there will be a better reception during the discussion in particular. “Little by little, the tax reform is going to become a reality. The details may be adjusted along the way, but we have been taking steps that are necessary. Probably next week we will have more definitions regarding the mining royalty and The task for us by the end of the year is to present the corrective tax bill and the regional income law,” he said.
In relation to the deadlines for processing the tax reform, the minister expressed that he hopes that at the end of November the Chamber of Deputies will finish the discussion and then go to the Senate. “A prudent deadline to have the tax reform approved would be the end of March 2023. That would be enough for the reform to start having some effect next year, and from 2024 onwards the impact would be more significant,” he said.
constitutional process
Additionally, he gave his reading on the results of the constitutional plebiscite: “The issues that appear justifying the Rejection vote, in general, are those in which the people felt that something was being imposed on them, something that was not very much within their meaning. common”.
“If one is guided by what has happened in the markets, the triumph of the Rejection was not followed by an economic euphoria. It is possible that something was already incorporated in the market prices as a result of the expectations that had been generated about the result of the plebiscite. But we must be clear that a new constitutional cycle will maintain an element of uncertainty. That is why it seems to me that the efforts that are being made in this political dialogue to shorten the deadlines and try to complete that cycle within the year 2023, is something that will help. In this context, investors are beginning to see a clearer horizon and are beginning to turn their attention to Chile and the opportunities that the country offers,” the minister declared.
The side letters of the TPP-11
Lastly, in relation to the side letters of the TPP-11, Mario Marcel, affirmed that the Government will wait to have a sufficient number for the ratification of the agreement if it is approved this Tuesday, October 11.
“The TPP11 has 10 countries, in addition to Chile. Chile has sent side letters to all those countries and will have positive responses from some. We have the precedent of New Zealand, which obtained five side letters. Clearly, the government’s expectation is not to have side letters with all the signatory countries of the treaty, but will aim for a sufficient number. This, because what the country has to do, after having the side letters, is to go with a new project to Congress to be approved. So, what will be defined after a reasonable time, will be to see what are the side letters they have and with that they will go to Congress for the legislative ratification of these agreements,” he pointed out.
Public security
The economist also referred to the 2023 budget, which has an emphasis on public safety. In this regard, Marcel pointed out that “Chile has already accumulated several years of uncertainty, of fear, which comes from different sources. Therefore, the main objective of this budget is to give the country peace of mind, security and confidence.”
“The country has to be calm that public finances are being managed well, that it will be investing in future growth, in social spending and in citizen security. The security issue transcends citizen security, although it is undoubtedly an important axis The 4.5% growth in spending on citizen security and justice is a clear message, after the previous government ended spending for this item almost equal to what it started with,” he added.
