Chile's Congress approves most of Kast economic reform package

Chile's Congress on Tuesday approved most provisions of an economic reform package backed by hard-right President Jose Antonio Kast. The opposition strongly contested the measures, arguing that they disproportionately favor wealthy people. The changes include tax cuts, a gradual reduction in levies on companies, and a 20-year freeze on the rate for investments of more than $350 million. The congressional vote followed Senate approval last week. The law will be enacted after a parliamentary debate on one remaining detail. Kast took office in March as Chile's most right-wing leader since the end of General Augusto Pinochet's 1973-1990 dictatorship. He campaigned on pledges to cut government spending, balance public finances and revive the economy. Leftist lawmakers, who say the measures approved Tuesday exclusively benefit rich people, have denounced the social spending cuts they say will result from the tax reductions. The opposition also criticizes a new government reimbursement for companies that lose their environmental permits. Rodrigo Arellano, deputy head of the University of Development's faculty of government, called the reforms a change of course. He said Chile's economic and tax debate since 2014 had been tilted toward higher tax rates, a greater state role and redistribution.