President José Antonio Kast is set to announce the key pillars of his new omnibus bill this Wednesday, which includes drastic measures to crack down on cigarette smuggling and boost tax revenue.
The proposal aims to toughen existing penalties for those transporting illegal goods. According to government sources, the plan would grant authorities the power to seize trucks and other vehicles found carrying tobacco shipments without the proper legal documentation.
The seizure measure is intended to act as a deterrent within the industry. "The idea is to ensure that truck drivers don't risk driving with counterfeit cargo, as they could end up losing their vehicles," noted government sources familiar with the project.
New penalties and prison sentences
The bill outlines a scale of fines and prison sentences based on the value of the goods. Currently, for offenses involving less than 10 UTM (Monthly Tax Units), fines range from one to five times the product's value, with prison terms of up to 540 days for repeat offenders.
For amounts between 10 and 25 UTM, the regulations propose intermediate prison sentences that can reach up to three years. In cases exceeding 25 UTM, penalties would increase to more severe prison terms, with sentences of up to five years.
The reform also establishes specific aggravating factors. Prison sentences will be increased by one degree when the products are subject to special taxation—such as tobacco and alcoholic beverages—or in cases of recidivism.
Beyond the crackdown on smuggling, the omnibus bill includes structural reforms to the tax system. A key highlight is the reduction of corporate tax, which would drop from 27% to 23% over a three-year period, alongside measures designed to stimulate investment and employment.