Piñera announced “improvement” to his pension reform: Tax contribution through end of exemptions

03/02/2021 World



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The President Sebastián Piñera announced that the Government will propose an “improvement” to its pension reform project: to tax contribution financed through the termination of some tax exemptions, and indicated that if this does not allow reaching a political agreement with the opposition, the Executive will impose an urgent need for immediate discussion so that Congress can ultimately approve or reject it.

“We are looking for an agreement, but if we cannot agree, (…) we are going to immediately discuss a bill that was approved more than a year ago in the Chamber of Deputies, and that allows to improve pensions in a very significant way to more than 800 thousand women and middle-class pensioners, “said Piñera, interviewed in Channel 13.

“The project that we present –the second stage of the reform, for the middle class and women– was approved at the end of 2019, more than a year has passed. Therefore, we believe that it was time enough. We have sought an agreement with all the strength in the world, we want to find it, but if we do not find it, we will fulfill our commitment and have an immediate discussion, so that our project is discussed in the Senate and hopefully it is a law of the Republic, “said Piñera.

Asked if the proposal is the same one already known, he explained that it was not: “We are going to improve it: a year has passed and we are going to improve it… Where is the main difference? There’s a 6 percent increase in the price of gradually, at the employer’s expense (as is already known), but there is also a fiscal contribution to improve and accelerate the increase in pensions“he explained.

FINANCED THROUGH “PRIVILEGE REVIEW”

“The opposition wants that 6 percent to go all to a collective, solidarity account (…) In our proposal, the 6 percent contributed by employers would be divided into two halves, but Additionally, the State is willing to make an additional contribution -like the one we did when we improved the Solidarity Pillar- with general funds of the Nation, which come from taxes“, he indicated.

“How is this financed? There is something called Tax exemptions: taxes that are not paid, because there are exemptions, privileges … We are willing to review these tax exemptions in order to contribute more resources to now improve the pensions of all Chileans, “he said.

Piñera recalled that, after the social outbreak, “the pension of people who are in the Solidarity Pillar has already improved by 50 percent: 1 million 700 thousand men and women; more than 55 percent of pensioners, but we have left We are going to forget them – improve pensions for women and the middle class. “

“That’s why I tell him: If we do not reach an agreement soon, we will have an immediate discussion and we will have the country and Congress discuss the two proposals on the table.“, he sentenced.

THIRD RETREAT “IT’S FOR THE RICH”

The Head of State also spoke out against the parliamentary bill that authorizes a third withdrawal of 10 percent of pension savings, which these days is notoriously stressing the presidential race, both in the ruling party and in the opposition.

Piñera recalled that the Constitutional Court had already declared the second 10 percent bill unconstitutional, adding: “There are more than five million Chileans who have nothing to withdraw. Therefore, an eventual third retirement is a retirement for the rich., which is not going to favor the most vulnerable at all. “



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