Latin America

An in-depth look at the Boric tax reform proposal

Chile’s left-wing president wants to raise income tax, create a new wealth tax, and add to mining royalties to fund his social security agenda

Boric tax reform proposal
Chile’s Finance Minister Mario Marcel speaks about reform tax system. Photo: Ivan Alvarado/Reuters via Alamy

During the first few months of Gabriel Boric’s presidency, the constitutional reform process dominated Chile’s political agenda. But whether the new proposed Constitution is approved or not, the government seeks to push through other key initiatives.

Chief amongst them is a tax reform proposal introduced last week by Finance Minister Mario Marcel, which aims at turning Mr. Boric’s campaign promises about expanding the country’s welfare state into an economically viable proposition, by significantly raising public revenue.

Mr. Boric’s team targets an increase of 5 percent of GDP in tax revenue — roughly USD 15 billion per year —...

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