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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

Venezuela frees at least 80 political prisoners, NGO says

At least 80 political prisoners were released on Sunday across Venezuela, human rights group Foro Penal reported, as the broader process of detainee releases continues at a slow pace under the interim government.

Foro Penal’s director, Alfredo Romero, wrote on social media platform X that verified releases took place nationwide and that the figure could rise as more confirmations are completed.

Attorney Gonzalo Himiob, also from Foro Penal, said the excarcelations occurred during the early hours of the day and emphasized that the number is not yet final pending further verification.

The releases are part of a series of steps announced by Venezuela’s interim leader, Delcy Rodríguez, who took power after the capture of former President Nicolás Maduro in a U.S. military operation on Jan. 3, 2026. Rodríguez has pledged a significant number of liberations but has been criticized by opposition groups and rights organizations for the slow and nontransparent nature of the process.

So far, the Venezuelan government reports that 626 detainees have been freed since December, though independent counts by human rights groups suggest the number of actual political prisoner releases is lower and that many remain behind bars.

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Families of those still detained have maintained vigils outside prisons, hopeful for further releases even as broader concerns about political imprisonment and due process persist.

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EU launches new probe into X over AI-generated fake nude images

The European Commission announced on Monday the launch of a new investigation into the social media platform X, owned by Elon Musk, over the generation of fake nude images of minors and women by Grok, its artificial intelligence assistant.

Europe will not “tolerate reckless behavior” by digital platforms, including the creation of “fake nude images of women and children,” said European Commission President Ursula von der Leyen in comments to AFP.

“Our position is clear: we will not entrust consent or the protection of children to technology platforms that violate and monetize them,” von der Leyen said. She added that while safeguards already exist, “we must do more to protect citizens, both online and offline.”

The new investigation aims to determine whether X (formerly Twitter) has violated the European Union’s strict digital regulations, which require platforms to protect users from illegal content.

The Commission also decided to expand the scope of an earlier investigation opened in December 2023 against X under the EU’s Digital Services Act (DSA).

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Grok includes a feature that allows users to create fabricated nude images based on real photographs of underage individuals or adult women, raising serious concerns over user safety and compliance with EU law.

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International

Rights group says nearly 6,000 killed in Iran protest crackdown

A U.S.-based human rights group said on Monday that it has confirmed the deaths of nearly 6,000 people during protests that have been harshly suppressed in Iran, where the United States has not ruled out a military intervention.

The demonstrations rocking the Islamic Republic began in late December over the rising cost of living, but quickly evolved into a broader movement against the theocratic regime established after the 1979 revolution. Human rights groups have accused Iranian authorities of firing directly at protesters and blocking internet access since January 8 to conceal the scale of the crackdown.

Despite the unrest, clerical leaders remain in power, while opponents of the system increasingly view foreign intervention as the most likely catalyst for change.

U.S. President Donald Trump has kept the option of military intervention on the table, announcing that Washington has dispatched a U.S. Navy fleet to the region.

Iran’s Ministry of Foreign Affairs responded on Monday, warning it would react “forcefully” to any act of “aggression.”

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Non-governmental organizations monitoring the death toll said their work has been hampered by the internet blackout, and cautioned that official figures are likely far lower than the real number of victims.

The Human Rights Activists News Agency (HRANA), based in the United States, reported that it has verified 5,848 deaths, including 209 members of the security forces.

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