President Piñera announced that the tax reform will not reduce the corporate tax
8 junio 2018

On June 1st, President Sebastián Piñera made his first public account before the National Congress focusing on the road map that his government will follow during his term. He announced he will not fulfill his campaign promise to lower the corporate tax from 27 to 25 percent, due to the delicate situation of national finances. He also announced that he will create the Office of Competitiveness, Investment and Productivity, to streamline the procedures of private companies before the State and promote reforms in the Fiscal Council to improve control of public accounts.

His State of the Union speech was marked by criticism of some measures of his predecessor, and by a call for national conciliation to put Chile back on the path of  development.

In that sense, he make it clear that “freedom will be the motor of development since it allows to free individual creativity and innovation”. In that sense, his government will assure that “the State is not an obstacle in Chile`s development”. However, he explained that his government will ensure a floor of opportunities for all Chileans because “a society where inequality prevails, is not a free society, so along with this value, we will promote the development of solidarity and justice in order to beat poverty. “

In the second part of his speech he focused on defining the future road map of his government where he presented his future measures in economic matters. Some of those measures are:

  • A tax reform focused on the simplification and modernization of the current system, with a view to streamlining and providing greater legal certainty to taxpayers.
  • He also announced that he will not fulfill one of his campaign promises while keeping the corporate tax rate at 27 percent. The reason lies in the fragility of public accounts.
  • The introduction of a bill that grants autonomy to the Fiscal Council with a view to monitoring compliance with an effective and transparent policy and fiscal rule.
  • The creation of the Office of Competitiveness, Investment and Productivity, entity in charge of simplifying procedures and current regulations.

Finally, he finished his speech by calling for the unity of the Chilean people to face future national challenges, and to put Chile back on the path of economic development.

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