Bernier Calls Upon PDP Legislators to Stop IVA Implementation
SAN JUAN–The candidate for governor from the Popular Democratic Party (PDP), David Bernier, called upon the party’s legislative leadership on Wednesday to put a stop to the implementation of the Value Added Tax (IVA for its Spanish acronym) and the increase of the tax on transactions between business, known as B2B.
Bernier, who is also PDP president, said that he had met with Senate President Eduardo Bhatia, and House of Representatives Speaker Jaime Perelló and asked them to halt the implementation of said tax changes, which are slated to come into effect next June.
“I’m recommending and requesting the Legislative Assembly to, as soon as possible, begin the steps to derogate the transformation of the IVU [sales tax] into the IVA and to stop the planned increase in B2B taxes from 4% to 10.5%,” said Bernier in a press conference at PDP headquarters in San Juan’s Puerta de Tierra sector.
He said that the change the legislation represents a tax level for businesses that is not positive for the economy. Bernier added that the other candidates in the gubernatorial race have said that they would bring a new tax system, which would mean that the Department of the Treasury would be taking on a costly transformation that it would eventually have to change.
“To allow a an increase in the IVA would hurt the pocket of our people and the operation of our businesses. What is convenient at this moment is that the legislature acts to avoid the change to the IVA and the increase to the B2B from taking effect in their final form,” said Bernier adding that “the people cannot take one more tax. The IVA will increase the cost of doing business in Puerto Rico. We need a model that gives us stability and lasts through time.”
Bernier explained that the actual model is having good results, maintaining revenues above the $200 million per percentage point, and is expected to pour close to $1,500 million to the public fund, which represents 17% of the commonwealth’s general fund.
He recommended giving room for the electoral debate to produce an essential consensus in fundamental issues for the people, such as the tax base to achieve the government’s fiscal health and the development of more economic activity.
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