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OECD recommends raising taxes on real estate and natural resources in Chile

They said that both measures could “ensure a more sustainable financing of social and infrastructure spending”.

The latest OECD Economic Outlook report reaffirmed the vision of Chile’s economic recovery for next year, estimating that this 2017 would reach the same level of growth as in 2016 (1.6%), while in 2018 Would reach 2.8%, close to the average point projected by the Central Bank (2.5% -3.5%).

The diagnosis of the improvement in the dynamism of the economy reveals similar explanations of the government as the international organization points to a greater external demand next year, and more favorable financial conditions. The projection includes a recovery of the investment, which of 0.5% of increase in 2017 would increase 4.1% in 2018.

It should be noted that the Organization for Economic Cooperation and Development (OECD) closed their information gathering before the monetary politics meeting of Central Bank in May, so it did not include the lowering of the interest rate to 2, 5% or their analysis of the last known data of the Imacec of April (0,1%).

Meanwhile, the OECD recognized risks to Chile in the fiscal area warning that although consolidation of spending is necessary to avoid a larger déficit (close to 3.1% in 2017) it could be a brake on infrastructure investment.

In this sense, The OECD suggested that the country to expand it tax revenues which could “increase taxes on real estate, and revise the taxes on natural resources.” Both measures could “ensure more sustainable financing of social and infrastructure spending,” the OECD said. Also it called for more flexible labor market regulation, increasing unemployment coverage.

2017-09-12T11:59:23+00:00 30/06/2017|Latest news|