Senators discuss lowering VAT from 19% to 18%

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VALPARAÍSO. -  A proposed cut on the value added tax (VAT) from 19% to 18% has provoked mixed reactions from members of Parliament. 

Senator José Antonio Gómez has said that “this is a matter being debated and the solution could be passed as a way to lower prices on products belonging to the basic consumer basket as well as compensate for any kind of consumer drop”.  His counterpart however, Senator Hernán Larraín, supports cutting the VAT by one percentage point, saying it would improve the national economy by allowing the people to spend more and companies to make better investments.

 Larraín will deliver a letter introducing the proposal to President Michelle Bachelet at 11:30 AM this morning.