Chile’s Boric Still Plans Changes to Tax System, Minister Says

(Bloomberg) -- Chile’s government will continue to insist on changes to the tax system, even after Congress rejected a bill on tax hikes Wednesday, according to Finance Minister Mario Marcel.

Most Read from Bloomberg

• Companies Are Telling Us the Real Reason They're Still Raising Prices

• Peter Thiel’s Founders Fund Advises Companies to Withdraw Money From SVB

• One Bank Folds, Another Wobbles and Wall Street Asks If It’s a Crisis

• In Biden’s Tax-the-Rich Budget, Capital-Gains Rates Near 45%

• Warner Bros. Delays ‘Suicide Squad’ Game Again to Add More Polish

“We will see which are the courses of action,” Marcel said in an interview with Radio Concierto Thursday. President Gabriel Boric “has been clear in his willingness to move forward with a tax reform.”

Boric suffered a crushing blow to his reform agenda Wednesday after the Chamber of Deputies rejected the tax bill that aimed to fund policies to reduce inequality and boost social services. The vote was a surprise to the government, coming just days after Marcel said he was convinced that the bill had enough support to pass.

The government hasn’t decided yet if they will wait 12 months to submit the bill again to the lower house, or present the same bill to the Senate instead, which would require a higher 2/3 quorum to advance, Marcel said. Boric has called for a cabinet meeting today and there should be more news after that, Marcel added.

• Read more: Chile Government Reels as Lawmakers Reject Key Tax Reform (2)

• Read more: Chile’s Young President Sees Policies at Risk by Tax Defeat (1)

President Boric is likely to use the defeat in Congress to speed up changes to his cabinet, with a potential announcement Friday, La Tercera said.

Most Read from Bloomberg Businessweek

• Even Wealthy Landlords Are Skipping Payments on Office Buildings

• America’s $52 Billion Plan to Make Chips at Home Faces a Labor Shortage

• The Biggest Winner of the Gas Stove Fight Is Induction Ranges

• Instagram Founder Says the Time Has Come for a New Social Network

• Health-Care Oversight Rule Changes Create Legal Risk for US Employers

©2023 Bloomberg L.P.