Friday, November 22, 2019

Puerto Rico Treasury Dept. collects $922 million in May

By on June 28, 2019

Puerto Rico Treasury Department headquarters in San Juan (CB file)

Acting secretary stresses trend is exceeding fiscal board projections

SAN JUAN – Puerto Rico acting Treasury Secretary Francisco Parés Alicea announced Friday that net revenues to the island’s General Fund for May totaled $922 million, a $21 million year-over-year increase, which exceeded projections for the month by $153 million. In addition, it is the most recorded for the month of May, he stressed.

“For the eleven months of fiscal year 2018-19 that have elapsed, which comprise the July to May period, the accrued net revenues to the General Fund totaled $10.23 billion. This figure represents a year-over-year increment of $2.1 billion, or 25.3 percent. Likewise, the revenue projection revised in October 2018 for that period was exceeded by $1.01 billion,” Parés said in a Treasury release.

Acting Treasury Secretary Francisco Parés (twitter.com/secauxri)

The official said that on May 9, the island’s Financial Management and Oversight Board certified a new fiscal plan and “once again revised upward the revenue projection” for this fiscal year.

“The October 23, 2018, projection was $10.24 billion, and on May 9, 2019, they revised it to $10.71 billion, for a $469 million increment,” his quote reads.

Parés said that “based on the positive performance of the May revenues and on that preliminarily observed during the first two weeks of June, the revenue projections made by the Board will be exceeded for the third time this the year,” adding that he anticipates closing the fiscal year on June 30 with about $11.3 billion in net General Fund revenue.

“This would represent $2.84 billion over the original budget projection made by the Board on June 29, 2018, and $593 million over” its May 9 projection, Parés said.

The new Treasury head attributed “this extraordinary performance” to factors such as economic activity related to the recovery after hurricanes María and Irma, the New Tax Model legislation implemented in January, and the “results obtained from the implementation of better tax managing practices to increase the levels of fiscal compliance.” Regarding the latter, he stressed the implementation in December of the second phase of the tax management system, the Internal Revenue Unified System (SURI by its Spanish acronym), the 360 Tax Service Centers and the Taxpayer Rehabilitation Program.

Parés pointed out that “year-to-year and over-projection” increases in revenue from individual and corporate income taxes, and consumption taxes such as the sales and use tax, or IVU by its Spanish acronym, and alcoholic beverages. He also said there were “improvements over the projections for the items associated to foreign corporations such as the Act 154 excise tax and the non-resident withholdings for patent royalties.”

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