[ad_1]
The Minister of Finance, Ignacio Briones, announced the formation of the Tax Commission for Growth and Equity, which aims to assess in which direction the Chilean tax system will advance, but not based on designing a specific tax reform.
The Government intends to reconcile incentives for investment and growth economic with the collection requirements, while seeking close tax burden gaps compared to other countries belonging to the Organization for Economic Cooperation and Development (OECD).
According to the Secretary of State, the group will aim to draw up a roadmap on the matter, so that the tax system is “simpler, fair, efficient and pro-growth.” It also hopes that it combines collection objectives, structure and progressiveness of the system in favor of economic growth.
The commission will be made up of 16 economists who are experts in economic development or taxation, who will work ad honorem, and will be led by the former president of the Central Bank Rodrigo Vergara.
The other members are the former ministers José de Gregorio, Rodrigo Valdés, Alejandro Micco and Manuel Marfán; Vittorio Corbo, former president of the Central Bank; Paulina Yazigiof the Chilean Sovereign Funds Advisory Financial Committee; Bettina horst, of Freedom and Development; Bernardo fontaine; Claudia Martinez; Jose Miguel Benavente; Veronica Mies, from the National Productivity Commission; Andrea Butelmann, from the ProCompetencia network; Cecilia Cifuentes; Soledad Arellano, Y Claudio Agostini, current tax advisor.
Likewise, the OECD and the International Monetary Fund will accompany the process, which will last for eight months and must make its recommendations known in June 2021.
The group’s goals
One of your first tasks will be review the IMF and OECD report on tax exemptions -which they have prepared since March in their advice to the Ministry of Finance- and prepare a proposal to advance in this matter.
While the recommendations that are made due to the tax burden gaps must satisfy the demands on the public budget, address their impact on the income distribution, evasion levels, administration costs, control and also compliance with the tax system, incentives to save and investment and economic growth.
They should also evaluate the role of taxes in improve resource allocation in the economy by reducing the negative externalities existing in different markets, with an emphasis on moving towards a more environmentally friendly economy.
