Minister Marcel raises a gear and affirms in Magallanes that with “the tax reform the resources of the regions will be doubled”

Within the framework of his national tour to explain the tax reform, the helmsman of the Treasury, Mario Marcel, assured during his visit to the Magallanes region that the regions will benefit from the reform, described by several experts as the most important collection initiative made in the country.

“With the mining royalty project we plan to dedicate at least a third of its collection to the financing of the regionsboth through regional research funds, as contributions directly to the Regional GovernmentsMarcel pointed out.

In this sense, he added that “in the corrective tax projects that are going to be presented towards the end of the year there will be 70% of that collection that will go to the Regional Governments and, in this way, we will be able to double the resources of the Regional Governments for development in the territory.

“This will be a very significant change with respect to the situation in which regional investment has been financed until now“, he claimed.

Processing in the Chamber

Last Tuesday, meanwhile, the Finance Commission of the Chamber of Deputies and Deputies resumed the discussion of the tax reform, in an instance that had a new presentation by the minister of the portfolio, Mario Marcel. It is a project that is fundamental for the Government, because they consider it as the source of financing for the other reforms that their program considers. This is why they called on the parliamentarians to have the discussion “slowly, but without pause”, with the aim that the proposal comes out of the commission during the month of September. Although the initiative could count on the support of the opposition benches, as projected by deputy Guillermo Ramírez (UDI), there are still critical voices against a project that could delay its dispatch to the Senate.

After his participation in the parliamentary instance, Minister Mario Marcel ruled out that this reform implies a completely new tax pact, taking advantage of denying some issues that, in his opinion, are not part of the proposal. “None of the regulations to which I have referred creates a new tax regime, an inheritance tax is not being invented here, a tax on donations, digital platforms, VAT or VAT refund is not being created. to the exporters. What we have are all modifications that aim to reduce or eliminate avoidance or evasion mechanisms,” emphasized the head of the Treasury.

It is a reform that has been cataloged by different economists as “one of the most ambitious” in the country’s history, and that has been analyzed in detail in various discussion forums. It was precisely this Thursday, in the webinar “Perspectives of the tax reform”, organized by the Latin American Center for Economic Policies of the Catholic University (Clapes UC), in which experts and former Ministers of Finance reflected on how this project could affect the investment – one of the great concerns of the business sector – and made a call to review some proposed rates, such as the one that taxes the profits retained by companies.

It was precisely in that instance that the former Minister of Finance in both governments of Sebastián Piñera, Felipe Larraín, pointed out that “I searched and did not find another such ambitious tax reform. There may be one, but I couldn’t find it. At least in half a century, there has not been such a radical and ambitious tax reform in terms of collection. It is refoundational, but it is fundamentally tax collection”. In addition, the economist, who participated in the informative meeting organized by Minister Marcel a few weeks ago, added that “the gap is mainly in the personal income tax, not in the corporate one, and the solution that is used is to charge hand in hand with the professional middle class, which is what is being done in this bill”.

More cautious was another of the participants in this event, the former head of the Treasury in the second government of Michelle Bachelet, Rodrigo Valdés, who pointed out that the proposed rate for the tax on retained earnings seems “a little high.” In this regard, Valdés made a call to “recalibrate some rates that are being discussed”, adding that “it is insufficient to say that this has effects on growth, the question is how to minimize that effect, which certainly must be done, but it is not enough to say that taxes distort”.

Finally, and regarding the deadlines for the processing of the project in the Lower House, the deputy and member of the Treasury commission, Ricardo Cifuentes (DC), questioned whether the times planned by the Executive can be met. “We have to read the entire project, not even the comparison is yet, that shows that we are late. We are not yet discussing the project article by article in detail, nor are we voting on it in particular or in general,” warned the parliamentarian.

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