SANTIAGO, Chile (AP) — Chile’s Congress on Tuesday approved nearly all of the remaining changes to a sweeping tax and economic overhaul package promoted by President José Antonio Kast, delivering a legislative victory to the conservative leader and his efforts to stimulate growth in one of Latin America’s wealthiest nations. Tuesday’s vote comes as Kast, who took office just over three months ago, struggles to jolt a sluggish economy. The economy shrank 0.5% in the first quarter of 2026 after several months of weak growth. Unemployment rose to 9.4% in the March-May period, its highest level since June 2021.The legislation aims to revive Chile’s private sector, drive job creation and eliminate the fiscal deficit. It will gradually slash the corporate tax rate for large companies from 27% to 23%, exempt newly built homes from the country’s value-added tax, limit which new universities can join Chile’s free tuition program and allow private companies to seek compensation when environmental disputes delay investment projects. Last week the Senate approved the bill, but it modified certain articles, sending it back to the lower house for a final vote. On Tuesday, lawmakers approved every change except one dealing with how municipalities will be compensated for tax breaks. To become law, the bill awaits a resolution on that final, minor sticking point.