Further to "Proposed Amendments to Excise Tax Rates; Monthly Tax Unit - July 1997", the bill amending the excise tax rates on alcoholic beverages was enacted and published in the Official Gazette of 18 November 1997, the same day that the World Trade Organization decided to set up a dispute settlement panel to consider the European Union's claim that Chile's excises on alcoholic beverages discriminated against European alcohol exports.

As from 1 December 2000, the tax rates on liquors, brandy and vermouth will range from 27% to 47%, depending on the absolute alcohol content. The tax on whisky will be gradually reduced from 70% to 47%. The tax on wine, champagne, cider and beer will remain unchanged at 15% and the tax on non-alcoholic beverages at 13%.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

For further information contact Anthony Cook, Deloitte & Touche, Santiago, Chile on Tel: +56 2 638 4186, Fax: +56 2 639 1522.

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