Tuesday, September 27, 2022

Although rising, Puerto Rico Treasury revenue remains less than last year’s

By on April 20, 2018

SAN JUAN – Puerto Rico Treasury Secretary Raúl Maldonado said Friday that the island’s net General Fund revenue for February and March was $671.2 million and $941.3 million, respectively.

“For a third consecutive month after the passage of Hurricane Maria, the revenue from individual [taxpayers’] income-tax surpass those of the same month of the previous year. This behavior is attributed to an increase in the tax withheld by the employers. Similarly, consecutive rises were observed in the last two months in the total collections of the IVU [Spanish acronym for sale and use tax]. Both income items are coincident with the economic activity,” Maldonado said in a statement.

However, the total General Fund revenue for both months was below projections, as well as the last year’s revenue. The result was attributed to a reduction in non-resident withholding collections, which are associated with the tax on royalties from manufacturing companies. These vary according to the companies’ tax planning, Treasury said.

As for revenue from the 10.5% state IVU, $214.4 million was registered in February, which represented $11 million, or 5.4%, more than the same month last year. In March the collections totaled $222.2 million, which is $24.4 million, or 12.3%, more than for the same month in 2017.

In the nine months elapsed since fiscal year 2018 (July to March) began, IVU gas generated $1.79 billion in revenue, a difference of $30.2 million, or 6.8%, less compared with last fiscal year.

The Treasury official said total net General Fund income for the fiscal year was $5.83 billion, which represents about $576.1 million, or 8.4%, less than the previous year, and $380.9 million, or 6.1%, less than projected.

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