Lagos says tax reform is a priority.
SANTIAGO -- President Ricardo Lagos called for a quick approval of
a new tax reform bill designed to cut tax evasion from 24% to 20% in
five years. Unpaid taxes, which currently stand at an estimated $4
billion a year, would be reduced by $800 million. However, the reforms
have met with strong opposition from the private sector, which fears the
effort will reduce competitiveness. Opposition parties voted against the
measures in the lower house of Congress, and the Senate has signaled
that it may still be willing to make changes to the law.