Thursday, January 20, 2022

Governor Leaves Open Possibility of Delaying Value Added Tax

By on March 1, 2016

SAN JUAN – Gov. Alejandro García Padilla has left the analysis on the possibility of leaving the value-added tax (IVA by its Spanish acronym) in the air during this election year to Treasury Secretary Juan Zaragoza.

“With regard to stopping the implementation of the IVA, I have asked Juan Zaragoza to do what is done when someone proposes something like this, a serious and thorough analysis, and I will do what is right,” the governor said in a WUNO radio interview.

However, he clarified that the IVA would not be eliminated, but that its implementation would be postponed for 60 days, since $25 million a month in revenue depends on its implementation.

Regarding David Bernier, he insisted he would not get into “controversies” with the gubernatorial candidate of his party. However, he questioned Bernier’s request to have the IVA stopped but not offer alternatives.

“In the letters where they ask me to stop [the IVA], they don’t tell me where the money will come from,” said García Padilla, who insists on eliminating income taxes to make way for the IVA.

“Eliminating income taxes should not be a divisive issue for anybody,” García Padilla said. “The last thing Puerto Rico needs is a governor seeking reelection, instead it needs one who works to resolve the crisis the country is facing.”

“I’m surprised when I see many politicians who say there are many taxes, but oppose their elimination,” he said, adding he would not address “insults” from New Progressive Party gubernatorial hopefuls Ricardo Rosselló and Pedro Pierluisi.

“I have to be the adult in the room,” he said about the criticisms of both politicians regarding his State of the Commonwealth address Monday.

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