SANTIAGO, Feb. 25 (Xinhua) -- Chilean President Sebastian Pinera on Tuesday said a newly-enacted tax modernization law will finance his government's national welfare program.
The law enacted on Monday aims to promote economic growth, investment and job creation, Pinera said at an event at the presidential palace in Santiago.
"It establishes a tax regime that favors, spurs and stimulates the growth and development of micro, small and medium-sized businesses (SMBs), which is going to benefit more than 1 million SMBs in our country," said Pinera.
The reform essentially lowers taxes on SMBs while raising taxes on the more privileged, he said.
According to the president's office, the law will increase tax revenue by 2.2 billion U. S. dollars, or 0.6 percent of Chile's gross domestic product.
