SANTIAGO, April 22 (Reuters) - Chilean forestry company CMPC said it would “probably” revise its investment plans if a tax reform bill currently passing through Congress becomes law.
The reform seeks to gradually increase the country’s tax take in order to fund an education overhaul. That includes higher corporate taxes and the elimination of a mechanism by which companies can gain tax exemptions on reinvested profits.
“A great part of the investment that the company has made has been financed with the reinvestment of profits and these incentives are obviously going to end from 2017 if the tax reform is approved,” said chairman Eliodoro Matte at the company’s annual general meeting on Tuesday.
“We are pretty much maxed out credit wise, so probably we are going to have to revise our investment plan.”
CMPC is one of Latin America’s biggest forestry companies. Its products include wood, plywood, cellulose used for paper, cardboard, tissue and boxes.
Reporting by Felipe Iturrieta, Writing by Rosalba O'Brien