Chile's New Right-Wing President Proposes Economic Reforms, Announces Over 40 Measures Including Tax Cuts

Santiago, April 15 (AFP/Reuters) - Chile's new right-wing President Jose Antonio Kast announced today that his administration will propose over 40 economic reform measures, including tax cuts and reconstruction funds, aimed at breaking past economic cycles. In his first televised address since taking office on March 11, Kast stated, 'We will submit bills to Congress in the coming days covering reconstruction, economic, and social development, which include more than 40 measures.' The proposal includes a gradual reduction of corporate income tax from the current 27% to 23%, although the left-wing opposition has already expressed opposition, arguing it will weaken public finances. Kast indicated that the overall plan aims to reduce unemployment to 6.5% and increase annual economic growth from approximately 2.5% last year to around 4% by the end of his term in 2030, as well as restore fiscal balance. These reforms also plan to rebuild over 1,000 houses destroyed by wildfires and propose temporary tax incentives such as a reduction in the capital gains tax on new home sales, along with measures to attract capital inflow. This marks the first major policy announcement since Kast took office on March 11, reflecting his campaign promise to significantly cut spending. Chile was previously led by left-wing President Gabriel Boric for the past four years. However, Kast does not hold a majority in Congress, which could affect his ability to push through policies. His right-wing allies hold 76 out of 155 seats in the Chamber of Deputies and 25 out of 50 seats in the Senate. (Compiled by Hong Pei-ying) 1150416