Chile Approves Mega Economic Reform by José Antonio Kast, Faces Veto and Constitutional Review

The Congress of Chile approved the mega economic reform promoted by President José Antonio Kast, which aims to stimulate growth, reduce taxes, and encourage investments. However, its implementation will not be immediate due to a partial veto announced by the Government to modify some articles and the review of several provisions by the Constitutional Court. The reform modifies 36 laws and 15 decrees, including a gradual reduction of the corporate tax from 27% to 23% by 2029, with the goal of attracting capital and stimulating the economy. It also includes measures for the recovery of areas affected by fires and regulatory changes in productive sectors. The Government will attempt to eliminate provisions regarding the right to financial oblivion and the payment terms for small and medium-sized enterprises, which are set at 30 days. The Constitutional Court's review of articles related to aquaculture concessions and compensation for investors will be crucial in defining the scope of the reform.