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Chilean President abandons his fiscal reform and presents new proposal

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.

Central America

U.S. Authorities Accuse Guatemalan Nationals of Using False Information to Sponsor Migrant Minors

Senior officials from the U.S. Department of Justice and the Department of Homeland Security announced Thursday criminal charges against three Guatemalan citizens accused of using false information to sponsor migrant children who crossed the U.S.-Mexico border without a parent or guardian.

According to an indictment filed in Ohio, Maritza Cahuec Coc allegedly submitted at least 12 sponsorship applications, several of which were filed under aliases or contained materially false statements intended to secure custody of the minors.

Under U.S. procedures, unaccompanied migrant children apprehended at the southern border are placed in the custody of the Department of Health and Human Services, which is responsible for their care until they can be released to a qualified sponsor, such as a parent or relative living in the United States.

Prosecutors allege that Cahuec Coc, who reportedly entered the United States illegally in 2018, received payments between late 2020 and 2023 for helping bring 12 migrant minors into the country. Authorities claim she submitted fraudulent documents and misleading information to obtain approval for the sponsorship requests.

The case was announced during a joint press conference led by Acting Deputy Attorney General Todd Blanche and Homeland Security Secretary Markwayne Mullin. However, officials provided limited details about the investigation and instead focused much of their remarks on criticizing immigration policies implemented under the previous administration.

Republican lawmakers and Trump administration officials have frequently pointed to the increase in unaccompanied migrant children arriving at the U.S.-Mexico border during President Joe Biden’s term, arguing that the government failed to adequately oversee their care and placement.

During Thursday’s briefing, A. Tysen Duva, Assistant Attorney General for the Justice Department’s Criminal Division, alleged that Cahuec Coc used the identities of other individuals and falsely claimed family relationships in order to obtain custody of the children.

“Maritza submitted sponsorship applications using other people’s identities and falsely represented that the minors were the children of close relatives in order to secure their release,” Duva said.

The case remains under investigation, and federal authorities have not yet disclosed additional information regarding the other two Guatemalan nationals charged in connection with the alleged scheme.

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International

Iván Cepeda Open to Revising Colombia’s Peace Policy Ahead of Runoff Election

Colombian presidential candidate Iván Cepeda said Thursday that he is willing to introduce “necessary changes” to the peace policy implemented by President Gustavo Petro, a strategy he helped design and promote during the current administration.

The future of Petro’s controversial “Total Peace” initiative has become one of the central issues in Colombia’s presidential runoff election, scheduled for June 21, where Cepeda will face right-wing candidate Abelardo de la Espriella.

De la Espriella, who narrowly won the first round of voting on May 31, has campaigned on a platform of tougher security measures and a stronger crackdown on drug trafficking and armed criminal groups.

Speaking to AFP in Bogotá, Cepeda acknowledged that adjustments to the peace strategy may be required after Petro’s efforts to negotiate with armed organizations failed to produce the expected results amid a surge in violence across the country.

“We are going to make the necessary changes, of course. We will conduct an assessment,” the 63-year-old senator said during the interview, held ten days before the decisive runoff vote.

Cepeda, a philosopher and longtime human rights advocate, explained that any modifications to the policy would emerge from a broad national dialogue involving political leaders, social organizations and other sectors of Colombian society. However, he did not provide specific details about the proposed changes.

President Gustavo Petro’s “Total Peace” initiative sought to negotiate agreements with guerrilla movements, paramilitary groups and major criminal organizations, including the powerful Clan del Golfo cartel and the National Liberation Army (ELN).

The policy aimed to reduce violence through dialogue and negotiated settlements, but critics argue that it failed to significantly weaken armed groups or improve security conditions in several regions of the country.

As the runoff campaign enters its final stage, the future direction of Colombia’s security and peace policies remains one of the most closely watched issues in the election.

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International

U.S. Halts Military Action Against Iran Amid Diplomatic Breakthrough

U.S. President Donald Trump announced Thursday the suspension of military strikes that had been scheduled against Iran later that evening, citing significant progress in negotiations aimed at ending the conflict that erupted in late February.

In a message posted on social media, Trump said the decision followed high-level discussions with Iranian representatives, which he claimed led to broad agreements on the key elements of a future peace deal.

According to the president, the “final points” of the proposed agreement have been approved in principle and outlined by the parties involved. Trump identified the United States, Israel, Saudi Arabia, the United Arab Emirates, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan and Egypt as participants in the diplomatic process.

The U.S. leader also stated that the naval blockade imposed on Iran will remain in place while negotiations continue. He added that the date and location for the formal signing of the agreement will be announced in the coming days. No specific details regarding the content of the deal have been released so far.

The announcement marks a significant shift from comments made by Trump just hours earlier, when he warned of additional military strikes against Iranian territory and reiterated threats involving key oil infrastructure within the Islamic Republic.

The decision comes amid a renewed escalation of tensions between Washington and Tehran. In recent days, both sides have exchanged military attacks while diplomatic efforts intensified to prevent a broader conflict in the Middle East.

Iran’s Revolutionary Guard recently claimed responsibility for drone attacks targeting U.S. military facilities in several countries across the region. Iranian officials described the operations as retaliation for American strikes against Iranian targets.

Although Trump’s announcement has been viewed as a sign of de-escalation, questions remain regarding the viability of the proposed agreement and the long-term stability of the negotiations. International analysts warn that the situation remains fragile and that any new incident could quickly reignite hostilities between the two countries.

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