The Senate approves Kast's major economic reform in Chile

Early Thursday morning, the Chilean Senate approved the sweeping legislative reform through which the right-wing government of José Antonio Kast hopes to boost the economy, a measure criticized by the radical left-wing opposition.

The plan now only needs approval from the Chamber of Deputies, where right-wing groups hold a majority.

"Chile needs to grow, and this bill makes that possible," said Finance Minister Jorge Quiroz following the approval, around 3 a.m. local time.

The bill includes several tax benefits, such as a gradual reduction in the corporate income tax rate from 27% to 23%, close to the average among developed countries.

It also provides for a 20-year freeze on tax conditions for investments exceeding $350 million.

Another proposal the government supports, despite criticism from the left, is the reimbursement of investments for companies whose environmental permits are revoked by the courts.

The International Monetary Fund concluded that the bill could stimulate growth, but could also put pressure on fiscal accounts.