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

Security Council to Hold Emergency Meeting on Middle East Crisis

UN Secretary-General António Guterres on Saturday condemned the “military escalation in the Middle East” following attacks by the United States and Israel against Iran and Tehran’s retaliatory strikes, just hours before an urgent meeting of the UN Security Council.

“I call for the immediate cessation of hostilities and de-escalation,” Guterres said in a statement.

The Security Council is scheduled to meet on Saturday at 21:00 GMT (4:00 p.m. in New York) to address “the situation in the Middle East,” the United Nations announced.

The meeting, during which Guterres will deliver remarks, was convened at the request of France, Bahrain, Colombia, Russia and China, according to a diplomatic source.

International

Trump Floats “Friendly Takeover” of Cuba Amid Rising Tensions

U.S. President Donald Trump said Friday that his administration is considering what he described as a “friendly takeover” of Cuba, as Washington continues to increase pressure on the island’s communist government.

“The Cuban government is talking to us and they have very serious problems, as you know. They have no money, they have nothing at this moment, but they are talking to us and maybe we will see a friendly takeover of Cuba,” Trump told reporters as he departed the White House for a trip to Texas.

Earlier in the week, U.S. Secretary of State Marco Rubio said Cuba needed a “radical change,” shortly after Washington eased restrictions on oil exports to the island for what officials described as “humanitarian reasons,” amid a deep economic crisis.

The United States has imposed an energy blockade on Cuba since January, citing what it calls an “extraordinary threat” posed by the communist-run island, located roughly 150 kilometers (90 miles) off the coast of Florida, to U.S. national security.

International

Argentina’s Senate Reviews Milei-Backed Labor Overhaul

Argentina’s Senate on Friday began reviewing the Labor Modernization Law promoted by the administration of President Javier Milei, a proposal that would significantly reshape labor rules across the country.

The upper chamber opened its final discussion of the contentious initiative, which revises the method used to calculate severance payments — lowering the amounts owed in dismissal cases — and introduces an “hour bank” mechanism that allows overtime to be offset with paid leave rather than extra wages.

The legislation also broadens the classification of essential services, a change that would place new limits on the right to strike in designated sectors.

The bill was initially approved by the Senate on February 11 and then moved to the Chamber of Deputies, where lawmakers passed it with amendments. It has now returned to the Senate for definitive approval.

Outside the Congress building in Buenos Aires, workers, trade unions and left-wing organizations staged demonstrations beginning at midday. The gathering later thinned out amid reports of disturbances and a strong police presence. Security forces had secured the area surrounding the legislature since early morning hours.

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Union leaders contend that the reform weakens labor protections, while many business representatives back the measure but stress that sustainable formal employment will require economic expansion, improved credit conditions, greater investment and a more dynamic domestic market.