Universal guaranteed pension advances to the third procedure in the lower house
As planned, after the approval and dispatch of the project that creates the Universal Guaranteed Pension, the Senate Chamber devoted itself this day to the study and vote on the project that reduces or eliminates tax exemptions, thus improving the current system tax in order to make it simpler and more equitable.
The initiative was approved in general and in particular by 29 votes in favor and 1 abstention, with the exception of the norms that had a separate vote request. In this way, the project was able to complete its third process, in the Chamber of Deputies and Deputies.
The exemptions addressed by this project, which will raise almost 0.70 points of GDP to finance the PGU, are the following:
Exemptions in the capital market: tax the highest value obtained in the sale on the stock market of certain instruments with a stock market presence.
Exemptions in the real estate market:
a) Elimination of special credit for construction companies.
b) Elimination of benefits for DFL 2 homes acquired before 2010.
Affectation with VAT to the provision of services.
Life insurance. The affectation with Tax on Inheritances and Donations is established, all the benefits obtained by virtue of life insurance contracts entered into since the publication of the law, except for the disability and survival insurance of Decree Law No. 3,500, of 1980.
Exclusion of the payment of the land tax surcharge on assets owned by the Treasury.
The president of the Finance Commission, Senator Ximena Rincón, explained the norm analyzed in this instance, stating that "it seeks to simplify the tax system regarding the use of various instruments of the capital market, real estate, those that affect the VAT and the luxury market, among others”. In this last aspect, she also detailed the formula proposed by the Treasury Commission to tax luxury goods and assets, including yachts, helicopters, small planes and cars.
After the vote in the Senate, Finance Minister Rodrigo Cerda said that “we only have ratification left in the Chamber of Deputies on Wednesday. If we achieve that, we will have a new law of the Republic that will allow us to pay better pensions." He stated that "this must be one of the most important pension reforms that we have had in recent years in our country (...) it will effectively mean that many Chileans will see their pensions increased, and that many Chileans who did not receive aid from the State will receive it from now on.” (SENADO.CL and DiarioEstrategia.cl)
