Chile PPD senators clash with government over tax provisions in reconstruction megareform

Three senators of the centre‑left PPD—Pedro Araya, Ricardo Celis and Loreto Carvajal—signed an agreement with Treasury Minister Jorge Quiroz to keep the tax‑invariability clause and a 1.5 % surcharge in the government's reconstruction megareform. The deal excluded any change to the corporate‑tax rate, which the senators expected to stay at about 23 %. Later the ministry announced a reduction of the corporate rate to 22 %, prompting the three senators to withdraw their support and accuse the executive of breaching “good‑faith” negotiations.

The withdrawal has intensified tensions within the opposition. Regional PPD leaders in Coquimbo and other areas condemned the senators’ pact, announced an extraordinary national committee meeting and said they will take the reform to the Constitutional Court. Municipal mayors also pushed for a targeted exemption for senior citizens, proposing income‑based thresholds for the contribution waiver.

Opposition parties, including the Socialist Party, Communist Party and Christian Democrats, echoed the criticism, warning that isolated agreements weaken a coordinated strategy against the megareform. Meanwhile, Republican Party figure Arturo Squella warned that the Senate vote could still bring unexpected outcomes and urged the PPD to maintain its backing for the negotiated formula.

The dispute centers on how much fiscal revenue the reform will forfeit and whether the agreed‑upon provisions will survive the upcoming Senate vote, slated for Wednesday.