The candidate for governor for the PNP, Pedro Pierluisi. (GFR Average)
The candidate for governor for the New Progressive Party (PNP), Pedro Pierluisi, defined the current tax system as “onerous and complicated” on Monday, so within his economic development plan he proposes a new tax reform.
“I am going to reduce the contribution rates, both for individuals and for companies, with special attention to small and medium-sized merchants, ” said Pierluisi. “Compliance must be simplified, so that we are more competitive and promote economic development, which in turn will increase government revenues without unfairly taxing our citizens and local businessmen, “he added in a press release.
The current tax system has not yet been in effect for two years, as it was on December 10, 2018 when then-Governor Ricardo Rosselló signed Law 257-2018, the tax reform project of the current government administration.
According to La Fortaleza, the current model reduced the tax burden of individuals and corporations, eliminated the tax on the provision of services rendered to other merchants (known as B2B) from 77% of taxpayers and reduced the SUT of prepared food from 11.5% to 7%.
As recently as April, Governor Wanda Vázquez Garced signed Law 40-2020, a measure by Representative Antonio “Tony” Soto Torres, which amended the Tax Reform. The government defended that these amendments expanded the benefits for taxpayers, employers and seniors.
In his expressions about the system he proposes, Pierluisi stressed that “I will make sure that SMEs have the best possible tax treatment. I will create campaigns in support of local merchants, I will increase seed capital funds for young entrepreneurs and women entrepreneurs, and I will encourage the Department of Economic Development to expand its technical support services to entrepreneurs and microentrepreneurs on the Island ”.
Regarding economic development, he also proposed the creation of a “really agile” system of permits through self-certifications and a unique digital identification, “so that the government does not ask for documents that it already has”.
In addition, he defended that he will ensure that all federal funds granted for the recovery after Hurricane Maria, the earthquakes and the pandemic are invested “properly and expeditiously”.
For this, it proposes “management and supervision strategies” and enables projects to be carried out mostly by local contractors and suppliers.
“I will embrace digital innovation as a guiding principle of economic and social transformation on the government side. On the private sector side, this transformation will entail the expansion of broadband and 5G infrastructure to increase the interconnectivity of our businesses, facilitate remote work and promote technology microenterprises, ”said the president of the PNP. R
Regarding broadband infrastructure, the Federal Communications Commission (FCC) approved in June $ 237.9 million in funds for three years to expand, improve and strengthen mobile broadband networks in Puerto Rico and the Virgin Islands. Of that total, $ 59.5 million should be allocated to the deployment of 5G networks in both markets.
In the case of Puerto Rico and after a competitive bidding process, the FCC approved $ 97.8 million for AT&T; $ 76.6 million for the Puerto Rico Telephone Company (whose network Claro operates); and $ 59.6 million for T-Mobile.