Chile – FinMin Larrain proposes new cut on stamp duty.

Chile – FinMin Larrain proposes new cut on stamp duty.

Finance Minister Felipe Larrain announced yesterday that the government is currently weighting a new cut on the stamp duty (tax on loans). The FinMin said that the plan looks to cut the rate to 0.2% from 0.4%, the third reduction during Pinera’s administration (it was 1.2% when he entered office). This is done in an effort to reduce tax evasion. He expects the tax proposal to be approved in the next couple of months.

Separately, Larrain mentioned that the government is always concerned about the appreciation of the peso, and it is responding to the currency’s strength the best it can.