Chile’s Kast Pushes Tax Cuts and Incentives for SMEs, Targeting 235,000 Businesses

A tax credit tied to wage payments will inject $1.4 billion annually into Chile’s economy, benefiting 235,000 small and medium-sized enterprises and protecting over four million workers. The credit is part of a broader economic reform package unveiled by President Jose Antonio Kast, which includes a four-year corporate tax cut from 27% to 23%. The reforms aim to boost Chile’s economic growth from 2.5% to 4% annually. The package also includes faster environmental permits, a temporary VAT exemption on new home sales, and a property tax exemption for seniors. Kast’s proposals face an uphill battle in Congress, where right-wing allies lack a majority.