Chile's Megareforma reform moves to final stage, pending one article

Chile's lower house approved the bulk of the National Reconstruction and Economic and Social Development bill, known as the "Megareforma," advancing President José Antonio Kast's agenda to boost investment, employment and post‑wildfire reconstruction. The package cuts the corporate tax rate from 27 % to 23 % by 2029, offers ten‑year tax stability for investments of at least $50 million (20 years for projects over $350 million), exempts seniors over 65 from property taxes, and provides a temporary VAT exemption for new housing. All major provisions passed, with the Chamber voting 84‑61 on the corporate tax cut and 85‑59 on the overall bill. The only provision that failed to reach quorum was the article allocating a fiscal compensation of 1.5 million UTM to the Municipal Common Fund for the senior‑tax exemption; it received 76 votes, two short of the 78 required, and will be settled by a mixed commission of deputies and senators. Opposition parties plan to challenge parts of the law before the Constitutional Court, citing concerns over fiscal losses for municipalities, environmental safeguards and the long‑term tax‑invariance regime. Government officials, including Finance Minister Jorge Quiroz, hailed the vote as a decisive step toward economic re‑activation and reconstruction of the Valparaíso, Ñuble and Biobío regions after the January fires.