Chile enacted higher taxes on big businesses Wednesday in an effort to counteract economic inequality, according to The Associated Press.

The law is also geared towards raising taxes on tobacco, alcoholic drinks and sugary beverages. Meanwhile, unsugared beverage companies will see a reduction in taxes.

Chile's government intends to use the revenue from taxes to fund education, health and other services.

There was a fear of prices skyrocketing, but alcoholic beverages and tobacco products saw minimal increases, according to La Tercera.

Specifically, wine and beer saw the greatest increase in price from taxes, and liquor stores do not have limits on how much they can increase the sale price as a result.

An economist at Universidad Gabriela Mistral, Erik Haindl, told La Tercera that the new laws are likely to cause a decrease in smokers, improving the quality of health for people.

But the reverse effect will be an increase of these products on the black market, as tax evasion will promote illegal sales elsewhere.

The new law was approved in early September after months of debate, the Wall Street Journal reported.

Some lawmakers were concerned with the tax hike serving as deterrent for future investors, and crippling the economy instead of aiding it.

But the law will actually increase revenue for the country by 3 percentage points of gross domestic product by 2018, Reuters reported.

"Today is a historic day, because the tax reform that we're signing into law is a powerful instrument that will give Chile more and better opportunities for inclusive development," Bachelet said on Sept. 26 from the Moneda presidential palace. "I want to underscore that we've been careful and provided incentives so that the reform goes hand in hand with the economic recovery."

In addition, it will help the public education and health services.

Finance Minister Alberto Arenas told WSJ the move would help the public sector budget by adding $2.3 billion more to next year's spending.