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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

Colombia says it would not reject Maduro asylum request as regional tensions escalate

The Colombian government stated on Thursday that it would have no reason to reject a potential asylum request from Venezuelan President Nicolás Maduro should he leave office, as regional tensions persist over the deployment of U.S. military forces in the Caribbean since August.

“In the current climate of tension, negotiations are necessary, and if the United States demands a transition or political change, that is something to be assessed. If such a transition results in him (Maduro) needing to live elsewhere or seek protection, Colombia would have no reason to deny it,” said Colombian Foreign Minister Rosa Villavicencio in an interview with Caracol Radio.
However, Villavicencio noted that it is unlikely Maduro would choose Colombia as a refuge. “I believe he would opt for someplace more distant and calmer,” she added.

Colombian President Gustavo Petro also commented on Venezuela’s situation on Wednesday, arguing that the country needs a “democratic revolution” rather than “inefficient repression.” His remarks followed the recent detention and passport cancellation of Cardinal Baltazar Porras at the Caracas airport.

“The Maduro government must understand that responding to external aggression requires more than military preparations; it requires a democratic revolution. A country is defended with more democracy, not more inefficient repression,” Petro wrote on X (formerly Twitter), in a rare public criticism of the Venezuelan leader.

Petro also called for a general amnesty for political opponents and reiterated his call for forming a broad transitional government to address Venezuela’s prolonged crisis.

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Since September, U.S. military forces have destroyed more than 20 vessels allegedly carrying drugs in Caribbean and Pacific waters near Venezuela and Colombia, resulting in over 80 deaths.
U.S. President Donald Trump has repeatedly warned that attacks “inside Venezuela” will begin “soon,” while Maduro has urged Venezuelans to prepare for what he describes as an impending external aggression.

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International

Cuba battles out-of-control dengue and chikungunya epidemic as death toll rises to 44

Cuba is facing a severe dengue and chikungunya epidemic that has already claimed at least 44 lives, including 29 minors, according to the Ministry of Public Health (Minsap). The outbreak—now considered out of control—has expanded across the entire country amid a critical shortage of resources to confront the emergency.

Authorities report more than 42,000 chikungunya infections and at least 26,000 dengue cases, though they acknowledge significant underreporting as many patients avoid seeking care in health centers where medicines, supplies, and medical personnel are scarce. The first cluster was detected in July in the city of Matanzas, but the government did not officially use the term “epidemic” until November 12.

Chikungunya—virtually unknown on the island until this year—causes high fever, rashes, fatigue, and severe joint pain that can last for months, leaving thousands temporarily incapacitated. Dengue, endemic to the region, triggers fever, muscle pain, vomiting, and, in severe cases, internal bleeding. Cuba currently has no vaccines available for either virus.

Minsap reports that of the 44 deaths recorded so far, 28 were caused by chikungunya and 16 by dengue.

The health crisis unfolds amid deep economic deterioration, marked by the absence of fumigation campaigns, uncollected garbage, and shortages of medical supplies—conditions that have fueled the spread of the Aedes aegypti mosquito, the primary vector for both diseases. “The healthcare system is overwhelmed,” non-official medical sources acknowledge.

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Beyond the health impact, the epidemic is heavily disrupting economic and family life. The intense joint pain caused by chikungunya has led to widespread work absences, while hospital overcrowding has forced relatives to leave their jobs to care for the sick. In November, authorities launched a clinical trial using the Cuban drug Jusvinza to reduce joint pain, though results have not yet been released.

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International

Ecuador on track for record violence as homicides hit highest level in Latin America again

Violence in Ecuador is expected to reach historic levels by the end of 2025, with the country set to record the highest homicide rate in Latin America for the third consecutive year, according to a report released Thursday by the Armed Conflict Location & Event Data Project (ACLED). The organization warns that criminal activity is not only persisting but could worsen in 2026.

Official figures show 7,553 homicides recorded through October, surpassing the 7,063 registered throughout all of 2024. ACLED estimates that 71% of the population was exposed to violent incidents this year, despite President Daniel Noboa’s declaration of an “internal armed conflict” in an attempt to confront powerful criminal groups.

According to the report, several factors are driving the deterioration of security: a territorial war between Los Chonerosand Los Lobos, the two most influential criminal organizations in the country; the fragmentation of other groups after the fall of their leaders; and Ecuador’s expanding role as a strategic hub for regional drug trafficking.

Since 2021, violence has forced the internal displacement of around 132,000 people, while more than 400,000 Ecuadorians — equivalent to 2% of the population — have left the country. Between January and November alone, violent deaths rose 42%, fueled by prison massacres and clashes between rival gangs.

The report warns that conditions may deteriorate further. Ecuador has been added to ACLED’s 2026 Conflict Watchlist, which highlights regions at risk of escalating violence. The expansion of Colombian armed groups such as FARC dissidents and the ELN, state weakness, and a potential rerouting of drug trafficking corridors from the Caribbean to the Pacific intensify the threat.

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“The president is facing a wave of violence that shows no signs of easing,” the report concludes.

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