CUD calls on gov’t to eliminate inventory tax, reform permitting

By THE STAR STAFF

United Retailers Association (CUD by its acronym in Spanish) President Ramón Barquín III called on the island government on Tuesday to eliminate the inventory tax and replace the permitting system with a digital, unified and predictable model.

“For over a year, we have maintained the same stance on every possible front: the inventory tax can no longer withstand short-term patches or study commissions; its total elimination must be immediate,” Barquín III said in a written statement. “My position as president of this trade group is clear: we will not allow the competitiveness of our SMEs [small and midsize enterprises] to continue being sacrificed to balance municipal budgets.” 

“The government must shift permitting reform toward a digital model that is unified, predictable, and free of bureaucracy,” he added. “It is time to move from promises to action; supporting local entrepreneurs is the only sustainable path to Puerto Rico’s progress.”

Barquín III described the permitting system as a “hidden tax” due to the time and money that he claimed business owners lose while waiting for approvals that should be granted automatically.

Regarding the inventory tax, he maintained that the levy penalizes the stockpiling of essential goods and reduces businesses’ ability to maintain supplies in the face of weather-related emergencies or supply chain disruptions.

The retail sector leader insisted that both issues require swift and concrete action from the executive branch and the Legislative Assembly.