In view of the complex situation that thousands of Chileans are experiencing due to the forest fires in the country’s central-southern zone, the Government of Chile began working from day one to coordinate and organize aid for the affected families.
These measures form part of the Recovery and Early Aid Plan, which will support Chileans who have suffered from this emergency with quick and concrete solutions.
These economic and social measures, which also aim to support the local economy, have come about thanks to work between the different undersecretaries’ offices, political and private sectors, social organizations and communities.
Some of the measures that will be implemented are: a $1,500,000 Chilean pesos (US$1,894) bonus payment for affected households; high-standard temporary housing; tax relief; and social assistance. They will support the elderly, the disabled and children, and will also include veterinary care. There is an initial budget of around $35 billion Chilean pesos (US$44.2 million) for the above.
Details of the measures
Recovery Bonus for affected families
The bonus provides unrestricted economic aid for people affected by the emergency. It aims to recoup living conditions, belongings, clothing or any other need. It will be paid only once to each family group by direct transfer to a Banco Estado Cuenta RUT (RUT Account) or over the counter at any Banco Estado. It is available to households who appear on the Basic Emergency Form (FIBE) and have had their homes and/or belongings affected.
It is available in one of two amounts, according to the level of impact suffered*:
High impact: $1,500,000 Chilean pesos (US$1,894).
Low to medium impact: $750,000 (US$945).
*The level of impact is determined by the Basic Emergency Form (FIBE).
Responsible institutions: Interior Ministry; Social Development Ministry.
Payment timeline: First payment between February 13 and 17 (the payroll will be updated once a week and a day will be selected to make the payments).
High-standard temporary housing
Any family that has lost their home due to the emergency will have access to a high-standard temporary home, with interior electrical installation and inlet and outlet connections for drinking water and sewage. It includes transfer to the houses, which are on regularized land.
A large part of the area affected is rural. We are therefore taking charge of the situation in areas that do not have sanitation networks. We are financing sanitation alternatives and drinking water connections within the Rural Sanitation System and the Rural Drinking Water Program through the Neighborhood Improvement Program (PMB). It will not be required that projects which fall within the Urban Improvement Program (PMU) are subject to satisfactory resolution if they are valued at less than 2,500 UTM; the same is true for those that are part of the PMB if they are valued at less than 5,000 UTM.
For those municipalities that require support, the Regional and Administrative Development Undersecretary’s Office (SUBDERE) regional teams will be available to reinforce this work.
Responsible institutions:
High-standard temporary housing: National Disaster Prevention and Response Service (SENAPRED).
Rural housing: Regional and Administrative Development Undersecretary’s Office (SUBDERE).
Installation of first homes: We are working to make the process as quick as possible. It will depend on stabilizing the fires and clearing the land.
Public services in the field
In different municipalities of the three most-affected regions, free mobile public services will be offered by institutions such as the Civil Registry, Banco Estado, Social Security Institute (IPS) and the Social Households Registry (RSH). These institutions are key for people to carry out essential procedures, including: replacing identity cards and bank cards; paperwork; updating the Social Households Registry; and advising on applications for state benefits.
Responsible institutions: Civil Registry; Social Security Institute (IPS); Social Development Ministry.
Timeline: Services will begin in the coming days. Calendars will be published on social networks and the government website.
Rehabilitation of infrastructure and basic services
Because to help mayors is also to help people, this measure provides relief to municipalities, lowering the barriers to accessing emergency funds. Financing will be provided for urban and neighborhood improvement programs to reconstruct, rehabilitate, improve and normalize public spaces and basic services. Projects that fall within the PMU will have financing of less than 2,500 UTM and those that fall within the PMB will have less than 5,000 UTM. They will therefore not be subject to satisfactory resolution. SUBDERE will provide technical assistance for these projects if necessary.
Financing: Emergency Urban Improvement Program (PMU) and Neighborhood Improvement Program (PMB).
Responsible institution: SUBDERE.
Timeline: Immediate. Transferred to the municipality once the project is approved.
Tax relief and exemptions
In the context of an emergency, measures are also necessary to provide economic relief for individuals and companies, in particular micro, small and medium-sized enterprises (MSMEs). For this reason, we have introduced 10 tax relief and exemption measures for people affected by the fires:
- Cancellation of fines and interest and facilities for unpaid taxes.
- Extension of the period to declare VAT (F29) and other monthly taxes (F50).
- Reappraisal of affected real estate in the Ñuble, Biobío and La Araucanía regions.
- Postponement of payment of the first and second instalments of land tax for affected areas.
- Streamlining donation processes in affected areas.
- Special procedure to report loss of inventory stocks, accounting books and other tax documents.
- Suspension of automatic collection from taxpayers from areas declared in a state of exception who are penalized for specific tax offenses.
- Cancellation of tax payments for services from taxpayers domiciled abroad if they are directly related to work fighting the fires.
- Extension of period in which taxpayers with collection processes at an advanced stage can regularize their situation and avoid auction of their assets due to non-payments of taxes.
- Exemption from customs taxes to expedite the entry of products and materials to support affected families.
Responsible institutions: Treasury Ministry; Internal Revenue Service (SII); General Treasury of the Republic (TGR).
Financing: Regular SII and TGR budgets.
Income continuity subsidy for MSME workers
We know that micro, small and medium-sized enterprises need our support. For this reason, companies that have suffered damages will be given a bonus of $328,000 Chilean pesos (US$413) for three months – corresponding to 80% of the minimum monthly income – for each worker hired by the company. This bonus will be extendable for another three months for up to 60% of the minimum monthly income. This subsidy will provide continuity to the salaries of those whose sources of employment were affected as a result of the catastrophe. The measure has financing of $2.5 billion Chilean pesos (US$3,150,000).
Responsible institutions: Labor Ministry via the National Training and Employment Service (SENCE).
Timeline: The application process will open during February.
*MSMEs must be taxed in the first category or be taxpayers in accordance with Article 22 of the Income Law.
Support for rural areas
This tragedy, which has strongly impacted the Ñuble, Biobío and La Araucanía regions, has been especially difficult for those who live in rural areas. For this reason, we have prepared a package of specific measures to directly support these people.
Support for farmers, smallholders and beekeepers
Initially, food and water for animals will be financed, as well as veterinary supplies and equipment for smallholders and beekeepers. This contribution will be between $100,000 and $400,000 Chilean pesos (US$126 to US$505) per person, and will be provided in money or products.
The aid for feeding animals will initially benefit 3,000 families affected by the catastrophe, regardless of whether they are INDAP users or not. The budget for this measure is $2.6 billion Chilean pesos (US$3,284,404).
Responsible institutions: INDAP – Agriculture Ministry.
Timeline: In process.
Emergency livestock operations
Veterinary operations will be carried out on livestock to provide emergency assistance to injured animals.
Responsible institutions: INDAP - SAG.
Timeline: In process.
Automatic extension of agricultural and livestock credits
Payments of INDAP user credit fees will be postponed for a maximum period of six months, while definitive measures are analyzed to recover the productive capacity of these families. This measure will benefit 6,652 people in the affected regions, equivalent to an amount of $10.7 billion Chilean pesos (US$13,516,586).
Responsible institutions: INDAP - Agriculture Ministry.
Timeline: In process.
Support for the rehabilitation of indigenous communities
We will offer support to indigenous communities that were affected by the fires in the Ñuble, Biobío and La Araucanía regions. A total of $500 million Chilean pesos (US$631,616) will be delivered in household and tool kits, direct support to affected Machi leaders and veterinary supplies.
Responsible institution: National Corporation for Indigenous Development (CONADI).
Timeline: From the week of February 13.
Support for the elderly
Municipalities in the Ñuble, Biobío and La Araucanía regions will be supported with up to $2 billion Chilean pesos (US$2,526,465) through the National Senior Citizens Fund. It will be allocated in aid and accompaniment for elderly people affected by the fires.
Responsible institution: National Senior Citizens Service (SENAMA).
Extension of care centers for children of mothers with temporary work
As a way of providing care alternatives, activities and food services for children between 6 and 12 years old whose main caregivers are involved in seasonal work during the summer season, we will extend the operation of the 70 care centers located in different municipalities of the three affected regions. This will benefit 2,630 children.
Responsible institutions: Social Development Ministry; National Sports Institute; National Board for Student Aid and Scholarships (JUNAEB).
Timeline: Open until March 15, 2023.
Support for children
All supplies for new-born babies from affected areas will be replaced and new games and recreational activity kits from the Chile Crece Contigo (Chile grows with you) program will be delivered to children between 0 and 4 years of age.
Responsible institution: Childhood Undersecretary’s Office.
Kit coverage: 1,400 children in shelters between 0 and 4 years of age.
Educational continuity
We will guarantee that students in areas affected by the fires can start their school year. For this reason, we are already working on actions to relocate students to other establishments, and rent nearby infrastructure and school transport to ensure travel for those who require it.
Responsible: Education Ministry.
Veterinary care for pets
Veterinary operations will be carried out in all the municipalities affected by the fires in the three regions. This measure will be managed alongside the municipalities through the Responsible Pet Ownership Program (PTRAC) for a total of up to $500 million Chilean pesos (US$631,616).
Responsible: SUBDERE.
Timeline: As soon as the agreement is made.