He president of the Confederation of Production adn Commerce (CPC),Ricardo Mewes, referred to the reform to the income tax proposed by the Government and to the economic situation in the country.
In conversation with Radio InfinityMewes argued that “Today, in the last year, we have just been talking both publicly and privately together about growing, and that is vital, because the private sector needs the State to grow, just as the public sector needs the private sector.”
“Ther are projects in development, but they have to be unblocked. There are sectors that require support from the State,” he added.
Likewise,he stated that “there is opportunity. What happens is that we need a State that accompanies and not that puts obstacles, and in that sense I think it is the only way for us to move forward, because otherwise we are going to continue on this paved path to advance in rates.”
Regarding the investment, Mewes noted that “Don’t tell me that ideologically we don’t invest, as or else our companies will go bankrupt. “We don’t care what government is in place, we are interested in ensuring that public policies are good for companies to develop.”
Conversely, the union leader commented on the proposal to lower the corporate tax to 23%, arguing that “the concept behind this is for Chile to be tax competitive. When we talk about 23, it means that we are in the average of the OECD countries with which we normally compare ourselves.”
When asked about increasing taxes on certain higher-income brackets, Mewes stated that “it is indeed not good to increase taxes on those people who are normally professionals” who “are the ones who invest in housing, make investments in the market, for example.” Thus, taxing these people would take away strength from the economy.”
What are the potential impacts of the income tax reform on Chile’s economic growth according to Ricardo Mewes?
Interview with Ricardo Mewes: Insights on the Income Tax Reform and Economic Growth in Chile
Time.news Editor: thank you for joining us, Ricardo Mewes, President of the Confederation of Production and Commerce (CPC). We appreciate your insights today, especially regarding the proposed income tax reform and the current economic situation in Chile.
Ricardo Mewes: Thank you for having me. It’s crucial that we discuss these topics as they have significant implications for our economy.
Time.news Editor: Let’s start with the proposed reform to the income tax. You mentioned in a recent interview with Radio Infinity that collaboration between the public and private sectors is vital for growth. Can you elaborate on this?
Ricardo Mewes: Absolutely. I firmly believe that the private sector needs a proactive State to foster growth, just as the public sector relies on a thriving private sector. It’s a symbiotic relationship. If we unblock ongoing projects and provide the necessary support from the State, we can create opportunities that will propel us forward economically.
time.news Editor: What specific challenges are currently hindering growth, in your view?
Ricardo mewes: There are various sectors in need of support and resources that are currently tied down by bureaucracy. When the government imposes obstacles instead of offering assistance, it hampers our ability to make significant strides. We need action-oriented policies that facilitate development.
Time.news Editor: On the topic of investments, you expressed that ideological concerns should not deter investors.Can you explain this further?
Ricardo Mewes: Certainly. Our companies require a favorable environment to thrive, regardless of the government in power. If we neglect to invest due to ideological differences, we risk bankruptcies across the board. Ultimately,we want public policies that benefit our industries and allow them to develop sustainably.
time.news Editor: There has been talk about lowering the corporate tax to 23%. What are your thoughts on this proposal in terms of tax competitiveness?
Ricardo Mewes: Lowering the corporate tax to 23% is essential for Chile to remain competitive.This rate aligns us with the average of OECD countries that we routinely benchmark against. It’s about creating an environment where businesses can flourish without excessive tax burdens.
Time.news Editor: You raised concerns about proposals to increase taxes on higher-income brackets. Could you elaborate on why you find this problematic?
Ricardo Mewes: Taxing higher-income professionals could lead to negative repercussions. These individuals are essential to our economy; they are often the ones investing in housing and the stock market. Increased taxes on them would diminish their capacity to contribute economically, which could ultimately harm our growth trajectory.
Time.news Editor: What practical advice can you offer to businesses navigating these changes?
Ricardo Mewes: my proposal is to stay informed and engaged with policymakers. businesses should advocate for reasonable public policies and express their concerns about any proposed tax increases that could stifle their growth. Collaboration with the government is key to paving the way for a more prosperous economy.
Time.news editor: Thank you for sharing your valuable insights, Ricardo. Your perspective on the income tax reform and the need for a strong partnership between the public and private sectors will undoubtedly help guide our readers through these challenging times.
Ricardo Mewes: Thank you for having me. It’s essential that we continue these conversations to ensure a robust economic future for Chile.