The changes that the new Chilean government is preparing to make to the tax system in order to simplify it will have a neutral effect in terms of tax collection, said Finance Minister Felipe Larraín on Wednesday.
Conservative Sebastian Piñera, who began his second term at the weekend, has promised to improve a controversial tax reform pushed by former President Michelle Bachelet to provide legal certainty to taxpayers.
"It is a project that will be fiscally neutral in terms of revenue collection. That does not mean that we cannot touch some rates," he said. Larraín to journalists.
"It's not a tax cut, but it doesn't mean that a rate cannot be changed if there are compensations from other sources," he added.
The Bachelet government enacted a complex tax reform and then tried to simplify it, but it was not enough to boost investment and economic growth, according to analysts.
Larraín said this week that they plan to present the plan to modify the tax system soon.
Source: Reuters
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