President José Antonio Kast announced that he will deliver his first televised national address this Wednesday, April 15, at 9:00 PM, to present the National Reconstruction Plan. The broadcast will be aired on free-to-air television and various digital platforms, according to reports from La Tercera and BioBioChile.
The proposal, which the opposition has dubbed the "Tutti Frutti Law" or "Omnibus Law" due to its wide-ranging scope, includes a total of 43 measures. These initiatives are organized into five key pillars: physical reconstruction, economic revitalization, institutional strengthening, fiscal discipline, and public safety.
The President detailed that the plan aims to address fiscal and institutional issues, while also revitalizing the economy and sending a message of hope to small and medium-sized enterprises. "Employment is by far the best public policy one can implement, as it also provides dignity to the individual," Kast stated during his participation in the "President Present" dialogue series in Coltauco, O'Higgins Region.
Tax Reform Details and Ministerial Outreach
One of the most sensitive aspects of the plan is the proposed tax reform, which includes reducing the corporate tax rate from 27% to 23%. Finance Minister Jorge Quiroz defended the move against criticism regarding potential revenue losses and the backdrop of rising fuel prices.
"This isn't a tax cut for the wealthy. It is a tax cut for businesses, so they have more capital to invest," Quiroz declared upon entering the Ministry of Finance. The minister emphasized that the reduction will affect 150,000 companies and that the primary benefit will be immediate for SMEs through an employment tax credit.
“One more very important detail: the primary and immediate reduction is for small and medium-sized enterprises, via an employment tax credit for low-wage jobs,” Quiroz added, explaining that the benefit will consist of a credit equal to 15% of gross wages to cover social security costs such as AFP, Isapre, and Fonasa.
The Finance Minister also urged against criticizing the measure: “Let’s not turn this into the typical caricature some create—that any tax cut is intended to favor the rich. The economy is in a difficult spot, and we are going to pull it through very quickly.”
In the days leading up to the national address, Minister Quiroz has maintained an intense schedule of meetings with lawmakers. According to La Tercera, the minister hosted parliamentary group leaders and heads of ruling coalition parties at his private residence in Las Condes to explain the scope of the plan.
During these meetings, legislators expressed concerns regarding the decision to bundle multiple reforms into a single piece of legislation and the potential limitations on free higher education. The plan also includes adjustments to inheritance taxes, hiring subsidies to reduce informal labor, and the reconstruction of areas affected by wildfires.
According to academic Marco Moreno, Dean of the Faculty of Economics, Government, and Communications at Universidad Central, the presidential address seeks to "reclaim the narrative during a delicate moment," given the early erosion of support for the Kast administration.
