Overview
- Lawmakers in the Chamber of Deputies approved almost all Senate amendments on Tuesday, sending the National Reconstruction and Economic and Social Development bill to a joint congressional committee to reconcile a single disputed article.
- The package cuts the corporate tax rate gradually from 27% to 23% by 2029 and grants 10- to 20-year tax stability for large projects to encourage long-term investment.
- The bill also exempts newly built homes from VAT, restricts which new universities can join the free tuition program, and allows private firms to seek compensation when environmental rulings delay projects.
- Business groups and market analysts praised the vote as investor-friendly while environmental NGOs and left-leaning politicians sharply criticized provisions that ease relocation of salmon concessions and speed approvals.
- Next steps include the joint committee decision on the remaining article, possible presidential vetoes of some legislative changes, and expected opposition appeals to the Constitutional Court that could delay final implementation.