Fiscal board may decide on tax relief in less than two weeks.

Robert Mujica, executive director of the Financial Oversight and Management Board for Puerto Rico

By THE STAR STAFF

Robert Mujica, the executive director of the Financial Oversight and Management Board for Puerto Rico, said Wednesday that the fiscal control entity expects to decide on a tax relief proposal from the island government in less than two weeks.

Speaking in an aside to reporters during a budget forum on the last day for filing a tax return, Mujica told reporters that the oversight board has received all the information it requested from the administration of Gov. Jenniffer González Colón and is now evaluating the proposal beyond its immediate cost.

“They have given us all the information we need, including how it would be paid for now,” Mujica said. “At this point, the board is evaluating it more broadly than just how it will be paid for today — what its long-term impact is overall.”

For more than a month, Mujica has publicly stated that the oversight board was nearing the end of discussions and preparing to announce what he described as a “positive decision” on the proposed tax relief.

The González Colón administration has estimated the proposal would cost about $500 million. Mujica said this amount was not included in the current fiscal year budget, which is a key reason for the delay in reaching a determination. The omission could limit funding for other critical programs or require reallocating existing resources, potentially impacting ongoing services.

He reiterated that any tax relief for Puerto Rico must be analyzed beyond its short-term price tag.

“We are not opposed to that figure — the $500 million,” Mujica said. “What we are saying is that we need to understand exactly what it means. We need to understand what it implies.”

Mujica said Puerto Rico’s reserve funds, although established by law, have not been adequately funded for decades.

“The issue with reserves in Puerto Rico is that, while they exist on paper, they have not been funded for, I believe, more than 20 years — maybe 30 years,” he said.

He said talks between the oversight board and the governing administration have been constructive.

“The conversations have been positive,” Mujica said. “We are very close to concluding this in a positive way.” 

He added that the board’s analysis focuses on how the proposal will affect public finances, specifically reserves, changes in government revenue, and the sustainability of the long-term budget.

Congress created the Financial Oversight and Management Board in 2016 to oversee Puerto Rico’s finances during its debt restructuring. The board continues to exercise broad authority over the island’s fiscal policy.