Regarding policies to mobilise domestic resources for development and improve fiscal conditions, Chile has implemented significant policies focusing on tax reforms and strategic partnerships with development banks. A new tax reform bill, introduced in January 2024, aims to increase tax revenue through measures enhancing tax compliance, adjusting corporate tax rates, increasing taxes on stock gains, and introducing a new wealth tax for high-net-worth individuals. This measure is part of a broader fiscal pact that includes principles for a modern tax system, public spending priorities and commitments to transparency and efficiency. Additionally, the government has proposed new value-added tax liabilities for certain imported goods and marketplace transactions. The Development Bank of Latin America (CAF) has aligned its 2023-26 Country Strategy with Chile’s national development plans. This strategy focuses on regional support initiatives, environmental protection, energy transition and digitalisation. The goals are to decentralise development across Chile's regions, support environmental and climate goals, contribute to decarbonising the energy matrix and improve digital connectivity.
Regarding policies to advance a robust, inclusive, and sustainable financial market, Chile has implemented significant policies to foster financial inclusion and deepen the banking sector. The introduction of Chile’s Fintech Law aims to enhance transparency and resilience within the sector, facilitating an open finance system that reduces information asymmetry and fosters innovation in financial services. State-owned Banco Estado has been instrumental in improving financial inclusion through initiatives like the Cuenta RUT, which provides simplified banking access for a large segment of the population. Additionally, the European Investment Bank has provided a EUR 200 million (Euros) loan to Banco del Estado de Chile to finance mortgages for new housing units with improved energy efficiency standards under the Ecovivienda Programme. Chile's financial markets have also been bolstered by its leadership in issuing green, social, sustainability and sustainability-linked bonds, which constitute approximately 30% of the sovereign debt stock. These bonds, including the world's first sovereign sustainability-linked bonds, have significantly broadened the investor base and mobilised resources for projects aimed at climate change adaptation and social initiatives.
In terms of regional and international finance and partnerships to catalyse international resources, Chile has strategically engaged in international co‑operation through the Chilean International Co‑operation Agency. The agency leads efforts to support development initiatives focused on the eradication of poverty, the reduction of inequality and sustainable development. Emphasising South-South co‑operation, Chile shares experiences and policies with LAC nations, fostering mutual development. Additionally, Chile collaborates with countries such as Colombia, Mexico, and Germany, and with the Economic Commission for Latin America and the Caribbean, to bolster feminist foreign policies and international co‑operation for development. This collaboration aims to enhance the capacities of ministries of foreign affairs and international co‑operation agencies. Furthermore, partnerships with international financial institutions like the European Investment Bank and the CAF demonstrate commitments to regional development, environmental protection, energy transition and digital connectivity.