Chile's Congress passes President Kast's expansive economic overhaul amid rollout hurdles

Chile's Congress gave final approval to President Jose Antonio Kast's flagship "mega-reform," a sweeping package that amends dozens of laws and decrees to revive the nation's economy. Central to the bill is a phased cut in the corporate tax rate from 27% to 23% by 2029, alongside incentives for investment and support for areas damaged by wildfires. Finance Minister Jorge Quiroz described the legislation as a reopening of Chile to investment and progress.

However, the administration plans to veto sections concerning a "financial right to be forgotten," interest-on-interest charges, and small-business payment terms, all of which still require congressional review. The Constitutional Court is also examining challenges to provisions on aquaculture concessions, environmental permits, and tax stability for new projects. Analysts note that the narrow passage margin turns the reform into a test of Chile's ability to provide long-term policy certainty, with future court rulings and political battles potentially eroding its effectiveness.