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
U.S. Issues Urgent Evacuation Call for Citizens in Venezuela
The U.S. Department of State on Saturday urged American citizens currently in Venezuela to leave the country “immediately,” citing an increasingly unstable security situation.
In a security alert, the State Department warned of reports involving armed militia groups, known as colectivos, that have set up checkpoints and are stopping vehicles to search for evidence of U.S. citizenship or support for the United States.
The warning comes one week after U.S. forces captured Venezuela’s ousted president, Nicolás Maduro, and his wife, Cilia Flores, during a bombing operation in Caracas. Both were transferred to New York to face trial on narcotics trafficking charges.
U.S. authorities emphasized that the volatile security environment poses significant risks to American nationals and reiterated their long-standing advisory against travel to Venezuela.
International
U.S. strike in Caracas killed 32 cuban security officers, experts say surprise was crucial
Two days after a U.S. military attack on a military complex in Caracas, Havana confirmed that 32 members of its security forces were killed in the operation, some of whom were likely responsible for protecting Venezuelan leader Nicolás Maduro. The Venezuelan government also reported that 23 of its own military personnel died during the assault.
Of the Cuban dead, 21 belonged to the Ministry of the Interior, which oversees intelligence services, and 11 were from the Revolutionary Armed Forces. No official information has been released regarding potential injuries.
Experts consulted by AFP agreed that the element of surprise was the key to the success of the U.S. military operation, which was meticulously prepared over months and kept entirely secret. “Cuban intelligence … convinced the Maduro regime and its security agencies that the United States would never attack Venezuelan territory,” explained José Gustavo Arocha, a former Venezuelan army officer and expert at the Center for a Secure Free Society, a U.S. defense think tank.
Fulton Armstrong, a former U.S. intelligence officer and Latin America researcher at American University in Washington, also highlighted the failure to anticipate the attack and to detect U.S. helicopters entering Venezuelan airspace, noting that even a five- to ten-minute warning could have made a significant difference for the guards and for Maduro.
U.S. forces additionally benefited from “incredible” real-time intelligence provided by stealth drones to monitor movements of the Venezuelan leader, according to experts. A highly sophisticated combat team was deployed, and analysts believe the order to “fire to kill” was likely given.
Paul Hare, former British ambassador to Cuba and Venezuela, added that Cuban intelligence also underestimated the extent of U.S. access to internal cooperation within Venezuela’s security apparatus, contributing to the operation’s success.
International
Report: Vatican mediation included russian asylum offer ahead of Maduro’s capture
The Vatican reportedly attempted to negotiate an offer of asylum in Russia for Venezuelan President Nicolás Maduro before his capture by U.S. forces last Saturday, according to The Washington Post.
The U.S. newspaper reported that Vatican Secretary of State Cardinal Pietro Parolin spoke with U.S. Ambassador to the Holy See Brian Burch about a supposed Russian proposal to grant Maduro asylum. A source familiar with the offer said that what was proposed “was that he would leave and be able to enjoy his money,” and that part of the plan involved Russian President Vladimir Putin guaranteeing Maduro’s security.
Despite these diplomatic efforts, the United States carried out a military operation that resulted in Maduro’s capture and detention, along with his wife Cilia Flores, who are now being held in New York on narcoterrorism charges.
The Washington Post also noted that U.S. President Donald Trump may have invited Maduro to Washington for in-person discussions about safe conduct, an offer that Maduro reportedly declined.
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