PPD objects VAT cut proposed by the DC

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SANTIAGO.-  The Party for Democracy (PPD) has expressed, through the group’s secretary general Pepe Arth, its disapproval of a proposal being made by the business sector (supported by the Christian Democracy)  to lower the Value Added Tax (VAT) to 18 percent.

According to Radio Cooperativa, Auth stated that the VAT can only be lowered in line with other taxes “that burden those with the greatest amount of resources”.

“We would prefer other tax adjustments.  The country needs an extraordinarily low tax rate to comply with current social demands”, he said.

According to Auth, “if we don’t aggressively tackle the problems of inequality in this country, we really won’t be able to jumpstart the development we need”. 

Despite support from the business sector and DC party, the proposal was halted on Monday by Minister of Finance Andrés Velasco, who maintained that the current administration has a “very clear” position regarding tax matters.