Chile

Chilean President Sebastian Pinera’s USD8.5 billion earthquake reconstruction plan includes implementing tax increases to raise USD3 billion over a four-year period. The increases include a 3 percent temporary hike in corporate income tax and a proposal that the country’s mining industry, which was not severely affected by the earthquake, “voluntarily” increase its royalties. In addition to the money from the increased taxes, the plan will be supported by a USD400 million withdrawal from Chile’s sovereign fund and a USD1 billion bond to be issued this year, among other measures.