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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.

International

Iran says agreement with U.S. to end Middle East conflict is in final stages

Iran’s Foreign Ministry spokesperson, Esmail Baqai, said Saturday that Tehran and the United States were in the “finalization phase” of a memorandum of understanding aimed at ending the conflict in the Middle East.

Speaking to Iranian state television Irib, Baqai explained that Iran had initially sought to draft a memorandum consisting of 14 clauses as part of the negotiations.

“We are currently in the phase of finalizing these memorandums of understanding,” he stated.

Shortly before Baqai’s remarks became public, U.S. Secretary of State Marco Rubio said there was “a possibility” that Iran could agree to a deal to end the conflict as early as Saturday.

“There is a possibility that later today, tomorrow, or within the next couple of days, we may have something to announce,” Rubio told reporters in New Delhi, adding that he hoped for “good news.”

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Despite acknowledging progress in the negotiations, the top U.S. diplomat warned that President Donald Trump could still decide to resume military strikes against Iran if talks fail to produce a final agreement.

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International

WHO Warns Ebola Outbreak Is Spreading Rapidly in DR Congo

The World Health Organization on Friday raised the risk level of the Ebola outbreak in the Democratic Republic of the Congo from “high” to “very high,” the highest alert category used by the organization.

WHO Director-General Tedros Adhanom Ghebreyesus said the outbreak is spreading rapidly across the country, particularly in the eastern provinces of North Kivu and South Kivu.

“The Ebola outbreak in the Democratic Republic of the Congo is spreading rapidly,” Tedros stated during a press conference.

He explained that the WHO had previously classified the risk as high at both the national and regional levels, while maintaining a low risk assessment globally.

“We are now revising our risk assessment to classify it as very high at the national level, high at the regional level, and low at the global level,” he added.

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A WHO spokesperson told AFP that “very high” represents the organization’s highest risk category.

The outbreak has expanded across North Kivu and South Kivu, regions divided by the frontline between Congolese government forces and the armed group M23, which is reportedly backed by Rwanda and has seized large areas of territory since 2021.

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International

Guatemalan Man Sentenced to 50 Years in U.S. Prison for Child Exploitation Crimes

Ángel Emilio Rodríguez Marroquín, a Guatemalan citizen living illegally in California, was sentenced to 50 years in prison on multiple charges related to the sexual exploitation of his two eight-year-old nephews, both of whom are disabled, according to a report published by Fox News.

The Central American national was arrested on November 22, 2025, on charges of producing and possessing child pornography, the report stated.

The investigation was led by U.S. Immigration and Customs Enforcement in Los Angeles and the Homeland Security Investigations division of the immigration service. Authorities said Rodríguez Marroquín recorded himself sexually abusing both children.

According to the Department of Homeland Security, Rodríguez illegally entered the United States in 2024, was arrested, and later released.

The convicted man is also under investigation in Guatemala for child exploitation offenses. That investigation is being conducted by HSI in coordination with the Los Angeles Cyber Crimes Against Children Unit.

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“This depraved illegal alien from Guatemala pleaded guilty to producing and possessing child pornography involving the abuse of his nephews,” said acting DHS Deputy Secretary Lauren Bis.

She also criticized U.S. immigration policies under former President Joe Biden, claiming the defendant would not have been in the country if stricter border controls had been enforced.

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