International
Chilean President abandons his fiscal reform and presents new proposal
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.
“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).
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.
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 Earthquake Death Toll Rises to 4,490 as Rescue Efforts Continue
The death toll from the powerful earthquakes that struck Venezuela on June 24 has risen to 4,490, according to the latest official figures released by the government on social media.
Authorities reported that 16,740 people have been injured, while more than 19,500 residents remain in temporary shelters after the twin earthquakes devastated Caracas and the neighboring state of La Guaira.
Rescue teams from Venezuela and several foreign countries continue searching through collapsed buildings in an effort to recover victims who remain trapped beneath the rubble.
Government officials said the earthquakes damaged more than 850 buildings, with 190 structures completely collapsing.
Thousands of families who lost their homes are currently staying with relatives or friends, while more than 19,500 displaced people are living in overcrowded emergency camps set up in parks, stadiums, and public squares across La Guaira and Caracas.
International
Tensions Escalate in Middle East as U.S. Bombs Iran After Maritime Attacks
The United States launched new strikes against Iran on Wednesday, following President Donald Trump’s warning that Washington would “hit hard” against the Islamic Republic. While Trump ordered the retaliation after attacks on vessels in the Strait of Hormuz, he also said he hoped the latest wave of bombings would end soon and left the door open for renewed negotiations.
U.S. forces “have begun carrying out additional strikes against Iran to further reduce its ability to threaten freedom of navigation in the Strait of Hormuz,” the United States Central Command said in a post on X.
Washington blamed Iran for what it described as “recent unjustified aggression against commercial shipping.”
Iran’s state news agency IRNA reported that explosions were heard in the port cities of Bandar Abbas, Konarak, and Chabahar.
“This is in retaliation for yesterday’s bombing of ships by Iran. If it happens again, it will be much worse,” Trump wrote on social media alongside an image showing what appeared to be a bombing at an Iranian location.
Before ordering the strikes, the U.S. president said that the ceasefire with Iran had ended. Mediators Pakistan and Qatar called for de-escalation, while the United Nations also urged both sides to reduce tensions.
The Strait of Hormuz remains a critical flashpoint in the Middle East conflict, which began in late February after U.S. and Israeli strikes that killed Iran’s Supreme Leader Ali Khamenei.
Iran-linked attacks on at least three vessels in recent days triggered a U.S. offensive against Iranian targets on Tuesday. Tehran responded by launching attacks against Gulf countries that are allies of Washington.
International
Deadly Drug Trade Rivalry Suspected After Eight Bodies Discovered in Southern Mexico
Eight bodies were found Wednesday along a highway in the southern Mexican state of Chiapas, near the border with Guatemala, in an incident authorities believe may be linked to a dispute over local drug sales.
The victims — six men and two women — were found abandoned on a road in a mountainous area of the municipality of El Bosque, according to the state prosecutor’s office in a statement published on Facebook.
Initial investigations indicate that the killings may be connected to “a dispute over retail drug sales between local criminal groups operating in the region,” the prosecutor’s office said.
Local media reports that several criminal incidents have increased in the area since the beginning of the year.
The road where the bodies were discovered is located in a mountainous region largely inhabited by Indigenous communities. Authorities have not released further details about the victims or possible suspects as the investigation continues.
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