Gov’t closes fiscal year with hike of $279 million in revenues

By THE STAR STAFF

The island Treasury Department said the government closed fiscal year 2026 with stronger-than-expected revenues, driven largely by higher income tax collections from corporations and individuals and a sharp increase in June receipts tied to manufacturing activity. 

Treasury Secretary Ángel Pantoja Rodríguez announced that net revenues to the General Fund reached $13.9 billion, an increase of $279.1 million compared with the previous fiscal year and well above the projections certified by the Financial Oversight and Management Board for Puerto Rico.

Pantoja Rodríguez described the results as a favorable performance, noting that corporate and individual income taxes, the sales and use tax, and nonresident withholding were the categories that most exceeded expectations. Revenues finished the year $874.3 million above the original projection and $182.9 million above the revised estimate issued in June.

June played a decisive role in the year-end results. The agency collected $2.04 billion that month, surpassing the original projection by $302.3 million and exceeding June 2025 revenues by $405.8 million. Income tax collections alone totaled $1.45 billion, a jump attributed to increased economic activity, particularly in the manufacturing sector.

By the close of the fiscal year, income tax revenues reached $8.03 billion, outperforming projections by 10.8% and rising 3.4% over the prior year. Corporate taxes generated $3.52 billion, exceeding expectations and marking the strongest contribution to overall revenue growth. Individual income taxes totaled $3.01 billion, slightly higher than last year and well above the projection. Nonresident withholding also saw significant gains, ending at $1.15 billion, a 39.2% increase over estimates.

Sales and use tax collections continued their upward trend, closing at $3.13 billion, above both projections and last year’s total. Excise taxes, however, fell short of expectations, a decline the Treasury Department linked to reduced sales of new vehicles. Tobacco products were the exception within that category, generating $123.3 million -- an increase of more than 50% compared with fiscal year 2025 and far above the original projection.