Chile's brand-new finance minister, Mario Marcel, reduced the expectations of collection on Thursday for the tax reform that will be proposed by the government of the leftist Gabriel Boric to finance social measures.
Marcel, of socialist origin and former president of the Central Bank, expressed the percentages committed to the political campaign. The collection will be “closer to the four points of GDP for the reform that will be promoted,” rather than the five points initially committed for the four years of government, he said.
The reform will focus on direct taxes on individuals and the minister hopes that it will be achieved through “a social dialogue with different organizations, experts, companies and workers” since April.
Boric seeks to increase social assistance to support the foundations of a European-style welfare state.
Marcel, who is the oldest member of Boric's young cabinet at 62, also called the GDP growth projections of 3.5% announced in its latest report by the government of conservative Sebastián Piñera (2018-2022) as “unplausible”.
“Not only did they have a growth figure (3.5% by 2022) that was higher than all estimates of different actors, but they also had an expansion of domestic demand that was around 2%, which is not very consistent with what is required in the economy,” Marcel said at an economic forum.
mass/pa/mr
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