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[POLITICS] · Chile · 10 sources

Chile opposition files constitutional challenge to megareforma tax reform

Opposition benches in the Chilean Chamber of Deputies – including the Socialist Party (PS), Party for Democracy (PPD), Christian Democratic Party (DC), Broad Front (FA), Liberal Party (PL) and the Communist Party (PC) – submitted a formal request to the Tribunal Constitucional to suspend key provisions of the government’s "megareforma". The challenge targets the tax‑invariance clause that would lock in low tax rates for high‑wealth investors for up to 20 years, and a set of environmental measures that grant privileged treatment to holders of environmental‑qualification resolutions, limit court‑ordered protective actions, and restrict third‑party claims, including those of indigenous communities. Lawmakers argue the reforms unfairly favour large investors, breach constitutional guarantees, and jeopardise fiscal resources needed for public services. Raúl Soto (PPD) said the opposition acted “in unity to try to stop this megareforma and tell the ministers that the fate of our democracy is in their hands”. Gael Yeomans (FA) warned that the reform would deliver “3 000 million dollars free to big entrepreneurs at the expense of the Chilean people”. Daniela Serrano (PC) criticized the government for prioritising the rich over the climate emergency, while Raúl Leiva (PS) called for a “strict pronouncement” from the Constitutional Court. The request arrives after the legislature approved the core of the reform under President José Antonio Kast’s administration, prompting the opposition to seek judicial review before the mixed commission’s final vote.