< Back to Heated Tobacco Products Tax Gap Map
Tax Gap of Heated Tobacco Products in Chile
Currently, there is no specific classification for heated tobacco products. As a result, they are under the category of “other manufactured tobacco products” and taxed using an ad valorem rate of 59.7% of the retail sale price.
Since 2014, the tax on cigarettes is structured based on a specific tax of UTM 0.0010304240 per cigarette and a 30% ad valorem tax based on the retail sale price (including taxes). UTM is the monthly tax unit used for legislative texts. Based on a conversion rate of for the monthly tax unit of 1 UTM = CLP 63.263, the specific tax represents CLP 65.188 per 1000 units (i.e., CLP 1.3037 per pack).
According to Resolution 556, the Chilean Customs Office, imported tobacco products in this category of “other manufactured tobacco” are subject to a customs tariff of 6% of their value. Personal imports of these products are only subject to this tariff if the value of the import is above CLP 30 (EUR 0.033). Companies are subject to the customs tariff regardless of the value of the import. Based on this interpretation, the statutory excise tax rate is CLP 1.8 per pack of 20 sticks for imported heated tobacco products.
Sources:
- Chilean Customs
- Customs Tariff, Chile 2022
- Internal Tax Service (SII)
- Internal Revenue Service
- Conversion rate UM to Pesos
Last updated Sept. 1, 2023