Puerto Rico legislature to evaluate tax reform changes with governor’s office
SAN JUAN – The chairman of the Puerto Rico House Treasury, Budget & Supervision, Administration & Economic Stability and Promesa Committee, Antonio “Tony” Soto, said on Thursday that the local tax reform bill is on track and he anticipates changes to the legislation in conjunction with the executive branch.
“We are not receiving a dollar from our taxpayers that would be for government spending, and we are leaving that dollar in the pockets of our people and our businesses to invest in our economy,” Soto told the media.
“Tax reform is very well-focused, very on track and, obviously, once the Legislative Assembly receives the bill, it will have to evaluate it and make the modifications we understand, together with the executive,” he added.
For her part, Senate Finance Committee Chairwoman Migdalia Padilla argued that the bill is not a tax reform, but a “country incentive.”
“There are great benefits for SMEs [small & midsize enterprises] and, in the same way we understand [it is] something good, that the IVU [sales & use tax] is reduced for prepared foods from 11.5 [percent] to 7 percent,” the senator told the press.
In addition, she said she believes the island’s fiscal oversight board will be able to accept the tax reform as it now stands.
“I understand they may accept it as it is,” she added.