The deputies of the UDI Bank representing the Ñuble Region, Marta Bravo and Cristóbal Martínez, asked the Government – specifically the Ministry of Finance – to study the possibility of mitigating the increase in contributions for the country’s agricultural goods, following different owners and small producers in the area were notified of a significant increase in the tax.
In this regard, it is worth remembering that Law 17,235 establishes that the Internal Revenue Service (SII) must reassess agricultural properties in Chile every four years, so it was appropriate to do so during this period, following in 2020 the tax value of more of 940 thousand lands.
However, and based on the notifications that owners in different areas of the country began to receive, where in the case of Ñuble they warned of a considerable increase in contributions, deputies Bravo and Martínez recalled that in 2020 former President Sebastián Piñera decided mitigate said increase via decree, reducing the assessment rate from 1 to 0.51%, which finally allowed the tax increase to not have such a negative impact on the agricultural world.
“Today is the least opportune minute for a reassessment of agricultural assets to be carried out in our country, much less in the amounts for which some owners have already been notified. The agricultural world is experiencing one of the most complex moments in recent times, especially in regions like ours, where they are just recovering from the forest fires and serious floods that we suffered last year. Therefore, we find it absolutely inappropriate and a lack of judgment that, for now, the Government is not evaluating a solution to avoid overburdening farmers once more, especially the smallest ones,” the deputies noted.
Along these lines, Bravo and Martínez specified that the current legislation already establishes that in the event that the total turnover of the land tax of the entire country increases more than 10%, compared to the immediately previous semester, the Government must reduce the tax rates in question.
For the same reason, and also appealing to the different difficulties that the agricultural world has had to go through in recent years, such as water scarcity, the covid-19 pandemic, the increase in imported products and, above all, , the economic instability that the country is experiencing, the representatives of Ñuble called on the Ministry of Finance to study this possibility, reiterating that “it is essential that we do not continue to suffocate such an important sector for Chile.”
“It is evident that an increase of this nature in contributions from agricultural land will end up increasing the value of all products, thus harming the majority of middle class and most vulnerable families. That is why it is very important that the Government studies the measures within its reach and implements them if feasible,” the legislators insisted.
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