Chile lawmakers seek to expand VAT rebate for diapers and medicines

A group of deputies from the Party for Democracy (PPD) and independent legislators submitted a package of amendments aimed at improving a bill that reimburses the value‑added tax (VAT) on diapers and certain medicines. The initiative, originally promoted by the Party of the People (PDG) and backed by the Ministry of Finance, was found to provide a per‑capita benefit of only about $3.53 per month, according to a study commissioned by the PPD‑Independents bloc.

Deputy Carlos Carvajal (PPD) and independent deputy Carlos Bianchi (Finance Commission) argued that the proposal is insufficient given the roughly $4 billion the country foregoes under the government's mega‑reform. They called for broader coverage, including items such as optical lenses, infant formula for pre‑term or nutritionally‑needy children, vitamin supplements for various age groups, and basic foodstuffs like rice, wheat flour, meat, milk and eggs. The amended bill is scheduled for a vote in the Social Development Commission on Monday.