Chile’s Congress puts President Kast’s economic overhaul on track to becoming law
Summary
Chile’s Congress has approved most parts of a major economic reform proposed by President José Antonio Kast to boost growth and reduce the budget deficit. The bill lowers corporate taxes, changes tax rules for new homes, and affects free tuition for some universities, and it now awaits final approval on a small issue about municipal compensation.Key Facts
- Chile’s Congress approved nearly all changes to President Kast’s economic reform package.
- President Kast took office about three months ago and aims to improve the economy.
- Chile’s economy shrank by 0.5% in early 2026, and unemployment rose to 9.4%.
- The reform will cut the corporate tax rate from 27% to 23% gradually.
- New homes will be exempted from the country’s value-added tax.
- The program limiting which universities can offer free tuition will be changed.
- Private companies can seek compensation when environmental issues delay projects.
- The bill still needs to resolve one small issue about how municipalities get compensated for tax breaks before it becomes law.
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