Chile’s PPD withdraws from tax‑invariance pact with President Kast’s government

The Party for Democracy (PPD) announced that its Senate caucus has nullified the agreement reached with Finance Minister Jorge Quiroz on a tax‑invariability provision within the broader Megareforma. The party said the government unilaterally altered the fiscal terms after a Treasury indication changed the originally negotiated conditions, prompting accusations of bad‑faith conduct and a loss of trust. PPD leader Raúl Soto declared that the breach justified taking the reform to the Constitutional Court to challenge both its tax and environmental components.

The reversal sparked a turmoil within the opposition. Senator Pedro Araya, who had helped craft the deal, was forced to flee Santiago amid media pressure, while Senate President Paulina Núñez and the minister pushed for an accelerated announcement that deepened divisions. The episode highlighted internal disputes among centre‑left parties and underscored the fraught relationship between the PPD and the Kast administration as the megareforma advances toward a parliamentary vote.