House of Deputies to vote today on fuel tax reduction

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SANTIAGO. -  The House of Deputies will vote this morning on a proposed law to reduce the excise tax on gasoline. 

The proposal, which would signify a reduction of $52 pesos per liter of gasoline, is being processed with utmost urgency.  According to the Lower House, the law is on the agenda to be discussed at today’s session, beginning at 10:30 AM.

The initiative, currently in its first constitutional phase, proposes a 24-month reduction on the excise tax for vehicle fuel.  The tax, which is currently set at 6 UTM per cubic meter, would drop to 4.5 UTM per cubic meter.

The law also puts forth a benefit for small and medium businesses, which would be able to compensate for taxes paid on postage and official stamps by way of a VAT tax cut.

Additionally, the statute plans to offer incentives for the purchase of hybrid vehicles (with motors that combine the use of both electricity and fuel), suggesting a reimbursement for owners on the cost of transport permits.