March 09, 2023 13:04 GMT
Markets Digesting Impact of Tax Reform Bill Rejection
- Local assets are little changed on Thursday as markets continue to digest the news that President Boric’s key tax reform bill was rejected by the lower house on Wednesday.
- The chamber of deputies rejected a tax bill that would have financed social programs to reduce inequality and boost social services — the key policies that swept Boric into office.
- The president now has to decide whether to present the bill to the senate, where it will likely face even more opposition, or wait a year to try in the chamber of deputies again.
- Overall, the defeat is likely to embolden the opposition and raise questions about the political acumen of Boric’s team to bring progressive change in Chile, a nation that’s maintained a business-friendly status quo for decades.
- “It is a very serious political error that puts in question the entire second year of his government,” said Kenneth Bunker, a political analyst at consulting firm Politico Tech Global.
- Despite a recent uptick, Boric’s approval rating currently stands at 35%, according to Cadem’s latest survey posted on Sunday.