Thursday, August 13, 2020

Ferrer Echoes Bernier in Proposing End to Looming Value-Added Tax

By on February 29, 2016

SAN JUAN – The former president of the Popular Democratic Party (PDP) and candidate for resident commissioner in Washington, D.C., Héctor Ferrer, concurred with the party’s gubernatorial candidate, David Bernier, when calling for the elimination of the sales and use (IVU by its Spanish acronym), business-to-business (B-to-B) and value-added (IVA by its Spanish acronym) taxes.

He also supported the implementation of a general excise tax at the ports.

In a statement released Monday, former Rep. Ferrer said, “The increase to the B-to-B and implementation of the IVA would aggravate the island’s economic contraction and will not generate the revenue the government expects to collect.”

“We need a tax system that allows for economic growth – that is not the IVU, the B-to-B and much less the IVA,” the also former House Finance Committee member said.

Ferrer explained that the party’s proposal includes a general excise tax of 10% on all items that come to the island, “without exclusions”; the elimination of income tax for taxpayers earning less than $50,000 and new tax rates that are higher for those who earn more, as well as a single, or flat, tax on corporations.

“The effect of the IVU has been adverse to our economy and people’s pockets. However, we have options that can be implemented immediately and would give relief to our working class, who now suffers the effects of an unfair tax system,” he assured.

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