Chilean President Sebastian Pinera delivers a speech during his visit to the quake-hit city of Coronel, Chile, April 16, 2010. Pinera on Friday announced a plan to finance the rebuilding efforts after the Feb. 27 megaquake, including a tax increase for big companies. [Xinhua]

Chilean President Sebastian Pinera on Friday announced a plan to finance the rebuilding efforts after the Feb. 27 megaquake, including a tax increase for big companies.

The measure will last for two years, including a 3-percent increase in 2011 and a 1.5-percent hike in 2012.

Pinera also announced a change in the mining royalty that aims to collect US$700 million in three years. And the tobacco tax will rise from 60 percent to 67 percent permanently.

The president said there will be a temporary increase of the real estate tax from 0.25 percent to 5 percent, and the government will sell unnecessary state assets.

He said that Chile needs US$30 billion for reconstruction, accounting for 17 percent of the nation's gross domestic product, or GDP.

Among the total, US$2.3 billion will be allocated to the construction of 200,000 new homes, with another US$2.1 billion to healthcare projects, and US$1.2 billion to infrastructure and public works.

A 8.8-magnitude earthquake and ensuing tsunami on Feb. 27 devastated the central and southern regions of Chile, killing about 500 people and leaving 500,000 homeless.

Chilean President Sebastian Pinera (L, Front) kisses a little girl during his visit to the quake-hit city of Coronel, Chile, April 16, 2010. Pinera on Friday announced a plan to finance the rebuilding efforts after the Feb. 27 megaquake, including a tax increase for big companies. [Xinhua]