UDI deputies Marco Antonio Sulantay and Eduardo Cretton announced that they will introduce an amendment to the 2027 Budget Law. Their aim is to prohibit the Internal Revenue Service (SII) from collecting taxes on activities declared illegal by the courts, such as online betting operations.
According to Diario Financiero, both lawmakers spoke on behalf of the UDI caucus. The announcement comes as Congress discusses the government's first budget bill, although next week is a constituency week and proceedings will pause.
The dispute stems from a resolution issued by SII in June of this year. That rule established a mechanism for online betting platforms to begin paying digital VAT from October. The deputies have repeatedly asked the agency to revoke it, without success.
The Supreme Court has already declared this activity illegal in Chile. The caucus therefore argues that taxing it amounts to legitimizing it. "The wait is over," the deputies said, noting that they have spent more than four months appealing to the service's goodwill.
The amendment will establish that SII may not implement, administer or maintain special tax filing and payment mechanisms for online betting platforms or other activities not authorized to operate in the country using funds from the 2027 Budget.
The UDI lawmakers also allege a contradiction within the state. In their view, SII's decision clashes with efforts by the Undersecretariat of Telecommunications (Subtel) to comply with the highest court's ruling.
"If the agency is so determined to collect taxes on an activity that the Supreme Court declared illegal (...), then they will have to abide by whatever this Congress decides in the exercise of its sovereign authority," the caucus warned.
The deputies clarified that they do not oppose discussing regulation of the sector. However, they distinguish between setting clear rules and addressing consequences such as gambling addiction, mental health problems and economic harm, and collecting taxes from companies operating outside the law.
The sources do not include a response from SII or the Ministry of Finance to the announcement. Nor do they detail how much the state collects or expects to collect through this tax.
The amendment's prospects depend on the votes. Sulantay and Cretton said they will seek support from other caucuses, including opposition caucuses, to pass it during the budget proceedings. They also asked the government to look at Brazil's strategy for combating illegal platforms.
