A few days ago the Minister of Transport, JJuan Carlos Muños, said that it would be a good idea to raise the tax on diesel due to the increase in traffic flow. Even during the second round campaign, Gabriel Boric spoke of the possibility of raising the fuel tax. However, due to the complex global economic situation and the rise in some raw materials due to the war in UkraineMinister Muñoz ruled out this option for now.
“The conditions we have today in the world, with a war in Ukraine, high fuel prices and a high dollar, makes that conversation not the most opportune time to have it. Indeed, President Boric’s government program proposes that the tax on diesel, which is a quarter of the tax on other gasolines, should probably rise to take care of greenhouse gas emissions,” the minister said in 24 hours.
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Government rules out raising tax on diesel for the time being.
Of course, he clarified that “it is something that we would like to do, because it is a matter of responsibility. It is an issue that is not going to be done at the moment because world economic conditions do not allow it.”
On the other hand, he indicated that it is an issue that should be addressed in the future.
“It is something that we should move forward and that we should do. It would allow us to correct an economic distortion, but also to get resources in a direction that could be attractive. It is an issue that has a lot of impacts that go beyond the Ministry of Transportation”, he pointed out.
Public transport fare hike
Another issue that has been on the table and has ignited the debate is a possible increase in public transport fares. Although the issue is analyzed by the panel of experts, who will deliver their recommendations at the end of the month, an increase would not be contemplated in the plans of the Executive.
“This government is waiting for what the panel of experts may recommend at the end of the month regarding the financial balance of the system. I understand that it is a Treasury decision. I understand that the option that the minister has proposed is that on this occasion we are not going to accept an increase in the rate. What we are going to do is keep it frozen,” said the Secretary of State.