SANTIAGO - Chile's government on Thursday proposed a sweeping tax reform that raises levies on companies to help fund an education overhaul, as it seeks to quell social protests ahead of local elections seen as a litmus test for the 2013 presidential race.
Center-right President Sebastian Pinera said his tax reform bill, which still needs congressional approval, would raise the income tax rate for companies to 20%, lower stamp duty on credit and increase the annual tax take by $700-million to $1-billion.
The bill, to be presented to Congress on Monday, also seeks to eliminate tax distortions, incorporate green taxes on polluting goods and includes a variable tax rate mechanism to cushion consumers from oil price swings.
"We're going to ask for an additional effort from companies by increasing their income tax rate from 17% to 20%," Pinera said in a national televised address.
"Additionally, a series of tax exemptions or distortions that have been reducing the tax take and aren't justified, will be corrected or eliminated." Read more here...
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