Representatives from Puerto Rico’s telecommunications sector presented a united front Tuesday against the proposed elimination of the business-to-business tax exemption, saying “far from helping the island solve its fiscal problems, it will trigger a double-digit increase in the price of products, services, operating expenses and the cost of living in general.”
Worried about the potentially harmful effects that eliminating the business-to-business sales tax exemption would have on their businesses, retail executives recently concluded that if the Treasury Department want to increase its revenues, it needs to “correct and streamline” the process of capturing the sales and use tax to collect from evaders.
Criticism to the bill proposing amendments to Puerto Rico’s sales and use tax code poured in Thursday from many of the island’s most prominent professional organizations, which essentially agreed that eliminating certain exemptions would have a “devastating” effect on businesses and consumers.
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