House files bill to move forward on granting tax relief for working class
The Puerto Rico legislature has filed Resolution 583 to secure an agreement with the Financial Oversight and Management Board to implement tax relief for the working middle class next year.
Omar Marrero, executive director of Puerto Rico’s Fiscal Agency and Financial Advisory Authority (AAFAF, in Spanish), praised the move, stating it will “allow the working class to also enjoy the good results of the economic growth we have had.”
He thanked House Speaker Rafael Hernández, Senate President José Luis Dalmau, and other lawmakers including Sens. Thomás Rivera-Schatz, Carlos “Johnny” Méndez and Gabriel Rodríguez-Aguiló, “for their collaboration in agreeing on a bill that makes this tax relief so necessary for our middle class.”
The agreement that led to House Resolution 583 came after the oversight board raised objections last week to a substitute for House Bill 1839. The bill aimed to simplify Puerto Rico’s tax system and offer tax relief to the working class and small and medium-sized businesses (SMEs), but the board believed it did not comply with the approved fiscal plan.
“During the dialogue, we were focused on achieving more extensive relief that also benefited the SME sector, but at the end of the day, we could not overlook the opportunity to provide relief to individual taxpayers through this agreement,” Marrero noted.
The Treasury Department will carry out the disbursements of the incentive based on the parameters in the filed bill, Marrero explained.
As provided in the Joint Resolution, any surplus after granting the incentive to eligible taxpayers must be transferred to the next fiscal year’s budget to be used as an incentive for the subsequent taxable year.
“While we’re satisfied with this accomplishment and appreciate the diligence and openness of the oversight board with this matter, we will continue working and will not rest until we achieve the tax reform our people especially deserve, reducing the tax burden on our SMEs,” Marrero added.
