Amid protests, Chile announces corporate tax breaks on the rich

Following massive demonstrations featuring demands for higher wages, better pensions, and improved health care, Chile's treasury secretary announced on November 1 that the government is dropping a plan for business tax breaks. For two weeks, thousands have hit the streets protesting against inequality that has forced the cancellation of two major international summits that had been scheduled for Santiago. Asia-Pacific Economic Cooperation and U.N. global climate gatherings, which were planned for November and December have been cancelled due to the unrest in the country, said President Sebastian Piñera last week. Though some pelters clashed with the Police who retaliated with tear gas to disperse the crowd, demonstrations on Friday were reported to be largely peaceful in which many parents with children were seen chanting, jumping and dancing. Many women were noticed wearing black to mark the killing of 20 people amongst the protests. Likewise, hundreds have been reported to be injured in looting, arson, and clashes with police and soldiers.

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Other announcements, rescue packages by Pinera

The country's opposition, on the other hand, said that the business tax breaks are not enough to tackle the situation. Opposition leaders now demand a new constitution to replace the 1980 charter written under Gen. Augusto Pinochet’s military dictatorship. The charter led to the partial or total privatization of many social services and natural resources, including water in Chile.

Earlier in October, Chile's President, Sebastian Pinera, introduced a series of measures stating that the pension would be increased by a total of 20%, prices of medicines would be cut and also guaranteed a minimum wage of $480 per month alongside a law that will introduce a state-based critical illness cover. Pinera acknowledged the fact that such issues based on inequality had been prevalent for the past many decades and the governments in power during those times failed on their part to recognize the problem at hand. He further apologized for the shortcoming of the previous governments.

Subway fare hikes have also been rolled back amid violent protests. With Chile not being able to produce its own supply of oil and importing it from foreign lands, it has led to high costs in terms of electricity, fuel, and transportation. The Chilean government stated that it was imperative for them to increase the subway fares in order to tackle the rising energy costs and employ further maintenance but that led to a sense of frustration among a lot of citizens.

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