Chile’s Congress approved nearly all remaining modifications to a tax and economic package promoted by President José Antonio Kast. The legislation reduces the corporate tax rate from 27% to 23%, exempts new homes from value-added tax, restricts eligibility for free university tuition, and permits private compensation for environmental delays. Economic data show a 0.5% GDP contraction in Q1 2026 and unemployment at 9.4% for March-May 2026.