President Piñera meets SMEs to describe his bill that contains measures to address payment within 30 days and a growth stimulation package
The President also shared his concern and his solidarity with employees at the IANSA Linares plant scheduled for closure, and announced that the Government will support those affected in order to reduce the impact of the sugar company closing this plant.
President Sebastián Piñera and Economy Minister José Ramón Valente met today with representatives from small- and medium-sized enterprises and start-ups. The President mentioned that it had been a fruitful meeting and announced that the "timely payment" bill will be called "payment in 30 days" or "the 30 days project", as its clauses require that payments to micro-, small- and medium-sized enterprises must be completed within a maximum of 30 days.
"I believe that the most important issue for micro, small, medium and large companies and for everyone in Chile is for economic growth to be healthy. This generates opportunities and increases sales, jobs, and salaries," said the President.
He explained that maximum payment term during the initial transition period will be 60 days, then 45 days, before finally reaching 30 days. Furthermore, the President announced that the government and the Internal Revenue Service (Servicio de Impuestos Internos, SII), are exploring a mechanism to link VAT availability to enterprises that pay bills within 30 days, in order to motivate payment within 30 days to micro-, small- and medium-sized enterprises.
The President also emphasized that the electronic goods dispatch note will control the entire process, from goods dispatch and issuing the bill, through to bill payment. This will ensure that control is up-to-date, online and very strict, to ensure compliance with this law, and that micro-, small-, and medium-sized businesses are paid in a timely manner, within 30 days.
"This is all good news for micro-, small- and medium-sized enterprises, because they will have working capital, which is like oxygen, enabling them to finance their own investments and current expenditure, and to grow," said the President.
The President also referred to the IANSA plant closure, where he expressed his concern and solidarity with the employees, sugar-beet growers and truckers. "We have had talks with the company, who announced yesterday that they will find a mechanism for gradually closing the plant to avoid a sudden impact on employment".
The company will complement half of any additional transportation costs, as products previously delivered to the Linares plant will now be delivered to the San Carlos or Los Ángeles plants.
He also emphasized that the Agriculture Minister has been regularly monitoring this case, and will ensure that the Agricultural Development Institute (Instituto de Desarrollo Agropecuario, INDAP) helps small- and medium-sized sugar beet producers to overcome this difficult situation.
Finally, he remarked on the change in Moody's credit rating for Chile, where he mentioned that this decision was based on past events that occurred during the previous government, and emphasized that his Government is driving through pro-growth measures to achieve economic recovery, job creation, and restore the credit rating.