Senator Loreto Carvajal (PPD) asks the Government to temporarily reduce VAT on food and maintain the freezing of public transport rates

In the context of a complex economic and social situation in the country, with annualized inflation reaching 13.1% and basic food basket inflation rising 27% in the last 12 months, pro-government voices are beginning to emerge that alert the Government of President Gabriel Boric about the need to promote a special aid program aimed at the most vulnerable families, to face the recessive crisis of 2023.

In this sense, Senator Loreto Carvajal (Deputy Head of the PPD Committee) proposed that “the priority for the coming year is to deliver a package of social assistance focused on the 40% of the most vulnerable population that is suffering the ravages of high inflation and growing job losses. In addition, the parliamentarian said that the complementary contribution for increasing the basic food basket legislated this year, which recipients of family allowance and Family Subsidy (SUF) receive of $10,183 per month is “clearly insufficient” support.

In this regard, among the new social supports that the pro-government parliamentarian proposes to the Executive, are: temporarily lower VAT to 10% on products that make up the basic food basket; and extend the Compensatory Subsidy for the increase in basic food that recipients of the Family Allowance and SUF receive today, to workers in the labor informality who are part of the 40% most vulnerable of the Social Household registry during 2023. This, considering that the 27% of workers are in informal jobs according to INE and do not receive social assistance.

For its part, it is proposed to maintain the freezing by 2023 of the current Public Transport fares, not only in regulated areas, but also in non-regulated areas, since an important part of the spending of vulnerable and middle-class families is destined to Public Transport. In addition, it is suggested that for older adults -who today pay 50% of the value of the ticket- a special effort be made to give free seniors who receive the Universal Guaranteed Pension (PGU).

Ideas that arise from a pro-government senator, such as Loreto Carvajal, who warns that it is the political duty – both of the National Congress and of the Government led by President Gabriel Boric – to support vulnerable families in a complex moment of high inflation, low economic growth and employment stagnation. In this complex scenario, on the verge of a new year, the parliamentarian insists on the need to implement targeted social support measures, which must be evaluated by the Executive.

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