Executive Branch Creates Expert Commission for “Pro-growth” Tax System as of 2021
Chile
23 octubre 2020

On October 22, the Ministry of Finance announced the creation of a commission to analyze the tax scenario with the intention of setting medium and long term objectives for a “simpler, fairer, more efficient and pro-growth tax system.” Click here to access a document prepared by the Executive branch detailing the remit for this commission.

The Ministry indicated that the commission will be tasked with defining a roadmap “to provide certainty around major principles combining dynamic collection objectives, the structure and progressiveness of the system, with clear incentives for economic growth.”

The commission will operate for 8 months and is expected to present a report in June 2021 that would serve as an action plan for a regulatory update. Its objectives include “identifying and analyzing the economic reasonability of maintaining, modifying or eliminating tax exemptions or special regimes currently in place that reduce tax uptake and favor certain taxpayers in particular.”

The commission also aims to “analyze the evolution of major tax evasion and any gaps in this regard compared to OECD countries.” It is expected that measures will be proposed to address this gap and “increase collection and fairness throughout the system.”

The commission will be chaired by the former president of the Central Bank of Chile, Rodrigo Vergara and include another 15 economists, such as José De Gregorio and Vittorio Corbo, who were also in charge of the Central Bank.

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