Monday, September 23, 2019

Puerto Rico gov: No problem in implementing tax reform bill in phases

By on November 12, 2018

Gov. Ricardo Rosselló (Cyber News)

CATAÑO, Puerto Rico – Gov. Ricardo Rosselló Nevares said Sunday that he had no objections to the amendments to the Internal Revenue Code, or Tax Reform, being implemented in phases to comply with the request of the Fiscal Oversight and Management Board to increase savings in case revenue projections are not met.

“If some $20 million more have to be found to cushion some parts [of the bill], they may be delayed for a few months. And that’s fine, as long as we can implement the tax reform. I don’t foresee it will be for individuals, that is, the 5 percent credit for all Puerto Ricans will be a part [of what is put into effect immediately],” the governor replied to questions from the media.

“But there are other measures that we want to work on at during the time of implementation, so if we delay it a few months we can have that cushion,” he added.

He mentioned, for example, the Earn Income Tax Credit and the corporate tax rate cut.

Meanwhile, the elimination or lowering of the business-to-business tax and the sales and use tax (IVU by its Spanish acronym) on processed foods may be left for a later date. The bill also includes the legalization of slot machines.

“The important thing is we come out with a tax reform now, the other considerations are secondary,” he said.

Last Tuesday, the executive director of the fiscal oversight board, Natalie Jaresko, met with the legislative presidents, the chairpeople of both chambers’ Treasury committees and the Treasury secretary, and among other matters, proposed increasing by $20 million the tax bill’s projected saving of $98 million.

Both House Speaker Carlos “Johnny” Méndez Núñez and Senate President Thomas Rivera Schatz believe the differences with the fiscal board can be solved.

The governor made his remarks after a ceremony held in Cataño to honor veterans.

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