International

Chilean President abandons his fiscal reform and presents new proposal

Photo: MSM

August 2|

Chilean President Gabriel Boric said on Tuesday that his government will not insist on a rejected tax reform bill and will promote new initiatives to raise the necessary funds to address some of its promised social proposals.

In June, the leftist ruler had said that his government would insist at the end of July in the Senate to resume the legislative processing of the tax adjustment.

Through a new Fiscal Pact, Boric said that the spending proposals involve resources for 8,000 million dollars to finance programs such as the Universal Guaranteed Pension to improve the lowest pensions, reduction of waiting lists in health, as well as greater investment in citizen security.

“This proposal considers the contribution made by growth, the reform of the state, the strengthening of tax oversight and taxes paid by the higher income sectors to be able to finance in this way the social expenses that are urgent,” he said in a televised speech.

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“We are not going to insist in the Senate with the bill that was previously rejected”, he added.

Boric did not specify deadlines for the delivery and processing of the initiatives, or how much the total collection is expected to be.

The government’s new proposal will be divided into two projects, one to improve tax compliance and the other to adjust income tax focused on those with greater resources.

“This initiative will also include tax incentives for investment, productivity and formalization, as well as benefits for the middle class and a new regime for smaller companies,” he said.

He specified that the tax incentives would be equivalent to 0.5 points of the Gross Domestic Product (GDP).

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The first project includes measures that seek to increase tax collection through legal modifications that do not imply a tax increase, which would increase tax collection by 1.5% of the GDP in net terms, according to a government minute.

Meanwhile, the second will be focused on income tax for both companies and individuals and will include incentives for investment, productivity and formalization, as well as benefits for the middle class and the new tax regime for smaller companies, which would have a fiscal cost of 0.5% of GDP.

At the investment level, tax incentives such as semi-instantaneous depreciation and a tax credit fund for investments with a multiplier effect on activity, employment and environmental sustainability are proposed.

It also commits to reduce by 30% the processing time for mining projects, according to the minutes.

Additionally, the plan includes five priority areas of productive diversification that by 2026 foresees three or four new lithium projects, two thirds of the energy matrix with renewable sources, 10-12 projects in the development of green hydrogen and an increase in the digital economy.

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The original tax reform bill was rejected in March by the deputies and the government could only insist on its passage through the Senate.

International

Football Fan Killed in Clashes After Colombian League Match

Fans of Cúcuta Deportivo and their traditional rivals Atlético Bucaramanga clashed outside the stadium following their local league match on Tuesday, leaving one supporter dead and several others injured.

The deceased fan was stabbed, according to a senior police official in Cúcuta who confirmed the cause of death in a video statement. Local media reported that the victim was a supporter of the visiting team, Atlético Bucaramanga.

The match ended in a 2-2 draw. Authorities had banned the entry of Atlético Bucaramanga’s organized supporters into the stadium in an effort to prevent disturbances.

Despite the restrictions, violence broke out in the surrounding areas after the game. Among the injured were three police officers, an institutional source told AFP.

The incident adds to a series of recent violent episodes linked to Colombian football. The most recent occurred in December, when supporters of Atlético Nacional and Independiente Medellín clashed in the stands and on the pitch, leaving 59 people injured.

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International

Missing Spanish Sailor Rescued After 11 Days Adrift in Mediterranean

The man had departed from the port of Gandía, on Spain’s eastern coast, with the intention of reaching the southern Spanish town of Guardamar del Segura, a journey of about 150 kilometers, a spokesperson for Spain’s maritime rescue service told AFP.

Search boats and aircraft were deployed on January 17, but the operation was called off on January 22 after efforts proved unsuccessful. Alerts were then issued to vessels navigating the area in case they spotted any signs of the missing sailor.

As hopes were fading, a surveillance aircraft from the European Union’s border agency Frontex spotted the sailboat on Tuesday, along with a person signaling for help, approximately 53 nautical miles northeast of Bejaia, Algeria.

A nearby vessel, the Singapore-flagged bulk carrier Thor Confidence, carried out the rescue and is expected to bring the man to an end to his ordeal when it arrives on Thursday in the southern Spanish port city of Algeciras.

Maritime rescue services shared images on social media showing a small white sailboat drifting at sea and secured alongside the much larger ship.

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It remains unclear how the sailboat ended up hundreds of kilometers off its intended route or how the man managed to survive for so long alone in open waters.

International

Rubio Says U.S. Could Participate in Follow-Up Russia-Ukraine Talks

The United States could join a new round of talks this week aimed at ending Russia’s invasion of Ukraine, Secretary of State Marco Rubio said on Tuesday.

Teams from Kyiv and Moscow met last Friday and Saturday in Abu Dhabi in their first publicly acknowledged direct negotiations to discuss the peace initiative promoted by former U.S. President Donald Trump.

“They are going to hold follow-up talks again this week,” Rubio told the Senate Foreign Relations Committee. “There could be U.S. participation.”

However, Rubio suggested that Washington’s role may be more limited than during last week’s discussions, which included Steve Witkoff, the president’s special envoy, and Jared Kushner, Trump’s son-in-law.

The secretary of state indicated that progress may have already been made on security guarantees for Ukraine, one of Kyiv’s key demands in any agreement with Moscow after nearly four years of Russian invasion.

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“There is one remaining issue that everyone is familiar with, and that is the territorial claim over Donetsk,” Rubio said, referring to the eastern Ukrainian region that Russia wants Ukraine to cede.

“I know that active efforts are underway to see whether the positions of both sides on this issue can be reconciled. It remains a bridge we have not yet crossed,” he added during the hearing.

Rubio acknowledged that the territorial question would be particularly difficult for Ukraine to resolve.