Withdrawal of 10% advances in the Chamber: Labor Commission approves it in general and government opens to debate taxes

His first step in the Chamber of Deputies took this Tuesday the government project that seeks to withdraw 10% of the AFPs: the Labor Commission approved it in general by twelve votes in favor and one against.

Despite the fact that it was budgeted to vote until the initiative was fully dispatched, the pro-government parliamentarians requested more time to do all the voting in particular, in order to reach an agreement with the government on the taxation of withdrawals.

This, because finally this Tuesday the government opened up to debate the issue, after on Monday most of the deputies, including from their sector, requested that a limit be set around $ 2,500,000 so as not to collect taxes. However, at that time the Executive did not give in and insisted that all withdrawals be taxed according to the general rule.

Official sources indicate that RN would request the Executive to set the limit at least $ 1.5 million, and the government would be willing to discuss that there should be no taxes up to that amount. In fact, during the morning of this Wednesday there will be a meeting on this issue between the Minister of Finance, Ignacio Briones; the Minister of the Segpres, Cristián Monckeberg; the heads of banks of Chile Vamos; and the official deputies of the House Finance and Labor Commissions.

Although this Tuesday it was budgeted to vote until full dispatch of the government project, finally pro-government deputies asked for more time, so they asked the government to remove the immediate discussion that the initiative has. Minister Monckeberg did so, but in any case the president of the Labor Commission, Gael Yeomans, said that they hope to vote on the initiative in the Chamber this Thursday, so the objective is to finish this Wednesday with the vote. in particular in the Commission that presides.

Meanwhile, the Minister of Finance, Ignacio Briones, valued the climate and the invitation to dialogue, and clarified that there is space to discuss the initiative, since if for example this bill is approved next week, and is published on Friday December 11, the first payments could start before Christmas, on December 18, the minister said.

All this taking as a reference what happened with the first withdrawal of 10%, where the AFPs advanced the payments and began to disburse the amounts just one week after the first requests were made. Of course, the Minister of Finance stressed that it is necessary to maintain in the project up to 15 business days established by the initiative for the first payment, and another 15 days for the disbursement of the second installment.

Once the project of the Labor Commission is dispatched, it must be voted on in the Finance Commission, and then in the Chamber of Deputies. In case of being approved with changes regarding what was dispatched from the Senate, it must return to the Upper House.

The government this Tuesday also re-entered some indications that were rejected in the Senate, such as the duty of the AFPs to inform members of the effect that retirement will have on their pension; and the obligation to reimburse withdrawn funds.

On the other hand, the government also entered new indications regarding the payment of alimony.

The deputies also entered indications regarding the payment of taxes. For example, Deputy Andrés Celis Montt (RN), presented indications proposing that those who earn a monthly average of up to $ 2.5 million be exempted from paying taxes.

This provision would allow the withdrawn amounts to be released from the collection of taxes for those who belong to the first three sections of the table of Complementary Global Tax. That is, people who have an annual taxable income of at least $ 29 million.

Additionally, several opposition parliamentarians entered different indications to indicate that the withdrawals will not constitute income.

The point is that the tax issue is clearly a presidential power, if the deputies present indications on the point they would be inadmissible. However, the admissibility could be voted, and if they win, the government could go to the Constitutional Court.

Indications were also entered to shorten the payment period for withdrawals. One of them indicates that the payment of the funds will be made in a single installment and within a maximum period of 15 business days from when the request was made at the AFP. Another indication indicates that the total payment must be made within 15 days of the request. Meanwhile, a third indication points to payment in two installments, one in 10 business days, and the next in another 10 business days.

All this is compared to the 15 business days established by the government project for the payment of the first installment, and another 15 days for the second.