By Fabian Cambero
SANTIAGO, July 21 (Reuters) – Chile’s lower house approved most of a major reform bill on Tuesday, pushing forward President Jose Antonio Kast’s plan to boost investment in the world’s top copper producer.
The Chamber of Deputies endorsed the majority of Senate changes to the “Law for National Reconstruction and Economic and Social Development.” The package, which modifies 36 laws and 15 decrees, now moves to a joint congressional committee to resolve a single rejected article.
The legislation is a cornerstone of Kast’s agenda. Since taking office in March, the conservative leader has sought to strengthen public finances through deregulation and market-friendly policies.
A key provision is the gradual reduction of the corporate tax rate from 27% to 23% by 2029. The bill also provides 10-year tax stability for investments of at least $50 million and 20 years for projects exceeding $350 million.
“We are extremely pleased these measures have been approved by a wide margin, with cross-party support that extends far beyond the ruling coalition,” Finance Minister Jorge Quiroz told reporters.
Despite the progress, cementing the bill into law could face obstacles. Opposition legislators said they would appeal the bill to the Constitutional Court, challenging the legality of certain provisions. The government is also considering vetoing some of the adjustments made by the legislature.
The reform package includes a reconstruction plan for the Valparaiso, Nuble, and Biobio regions following devastating wildfires in January. Other measures include property tax exemptions for seniors and expense reimbursements for projects previously blocked for environmental reasons.
The Confederation of Production and Commerce (CPC), Chile’s main business lobby, endorsed the bill, saying it provides certainty for investors and simplifies regulations.
J.P. Morgan described the law in a report as the “most important political catalyst” for the local stock market this year. However, consultancy Teneo warned that the polarized debate could lead to a “contentious implementation process.”
Environmental groups have criticized the bill, specifically provisions that ease the relocation of salmon farming concessions. In a statement, 18 organizations called the move a strategy to “privatize” natural resources without adequate technical analysis or environmental assessment.
(Reporting by Fabian Cambero; Editing by David Gregorio)
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