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Rosa Sides With Bernier Against Current Tax System

By on February 26, 2016

SAN JUAN — On Friday, Popular Democratic Party (PDP) resident commissionership hopeful, Sen. Ángel Rosa urged for changes to the current tax system, while deeming it as unsustainable for the island’s residents and businesses.  

“Puerto Rico’s tax system isn’t going to stand much longer. The weight on the working class is exaggerated. We need to fix the unjust increase of 4.5% to the sales & use tax [IVU by its Spanish acronym] without tax relief and the application of this tax rate to services,” Rosa said.

He echoed comments made by PDP gubernatorial candidate, David Bernier, who recently asked Gov. Alejandro García Padilla to stop the tax hike on business-to-business transactions slated to take effect in April, when the commonwealth is expected to complete the transition to a value-added tax (IVA by its Spanish acronym) system. The latter was approved as part of the controversial tax reform signed into law last summer, and which resulted in an increase to the sales tax from 7% to 11.5%, as well as a new 4% tax on certain business to business transactions, and which is expected to jump to 11.5% when the new VAT system kicks in.   

“I always opposed the tax system [approved in 2015]. Since the beginning, we favored the original proposal’s tax relief to the working middle class” said Rosa, adding that what was eventually approved is a patch.

The PDP senator added he has thoroughly discussed this topic with Bernier, with both against the VAT on services and the lack of tax relief on Puerto Rico workers, both of which are blows to the local economy.

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