Finance Minister Jorge Quiroz has spearheaded the creation of an economic 'mega-reform' that was submitted to Congress this week, according to latercera.com.
The bill seeks to pivot the country's economic direction under the administration of José Antonio Kast. The initiative is the result of a design process that intensified following the president's victory in the second round.
Originally, the government team had planned the 'Desafío 90' strategy, developed by Bernardo Fontaine. That plan consisted of a series of 25 independent bills and 40 regulatory changes intended to streamline the legislative process.
However, the decision to consolidate these measures into a single piece of legislation was driven by Quiroz. The minister sought to ensure that fundamental changes are implemented quickly to deliver results before next year.
A strategy for legislative unity
The decision to present a single package was made in the wake of the wildfires that struck the south of the country. This crisis altered the political and economic strategy of Kast's inner circle.
The reform's design includes corporate tax cuts, tax integration, and the creation of a subsidy for formal employment. The latter consists of a tax credit for wages falling between 7.8 and 12 UTM (Monthly Tax Units).
Additional proposals include extending tax stability, simplifying permitting processes, and the elimination of property taxes. According to latercera.com, these final points were key drivers of the Republican Party's presidential campaign.
The single-bill strategy has caused friction within the governing coalition. Ximena Ossandón, Vice President of Renovación Nacional, criticized the lack of a segmented approach to the initiative.
“We would have liked to separate and parcel out the measures, specifically to advance the ones that can move faster, because clearly, we are going to get bogged down,” Ossandón noted, warning that the complexity of the text could hinder progress when facing the opposition.
The bill also underwent modifications before its submission. Some measures, which were initially compared to Javier Milei's 'Omnibus law,' were stripped from the final text to facilitate its passage.
Minister Quiroz, who took control of the economic agenda after joining the campaign team in July, is considered the architect of the reform's comprehensive structure. The final text also incorporates temporary tax reductions and measures aimed at revitalizing the real estate market.
