Governor enacts 45-day moratorium on ‘La Crudita’ fuel taxes
By The Star Staff
Gov. Pedro Pierluisi Urrutia enacted Senate Joint Resolution 240 into law on Tuesday to establish a 45-day moratorium on the payment of taxes on crude diesel oil and gasoline to bring relief to consumers, but only until it reaches $25 million in loss taxes.
Pierluisi instructed the Treasury Department to temporarily suspend the excise tax up to a limit of $25 million for existing inventory.
The Joint Subscription Association (ASC) must declare a dividend of $50 million from its capital reserve accompanied by a special contribution of 50 percent. The ASC will then remit $25 million to the General Fund on or before June 30, which will be used to compensate for the loss of collections generated by the temporary suspension of taxes on gasoline and diesel oil.
The Department of Consumer Affairs (DACO) will maintain in force during the moratorium an order prohibiting increases in gross profit margins at all levels of distribution and marketing in the sale of gasoline, liquefied petroleum gas and diesel. The moratorium could be extended for an additional 45 days, as long as an economic study is carried out and the resources for income neutrality are identified.
“Puerto Rico, like other jurisdictions, has been affected by the war between Russia and Ukraine. I am signing this measure in order to alleviate, albeit temporarily, the impact on citizens’ pockets due to the increases reflected in the price of oil and diesel oil, and I am doing so with duly identified repayment sources,” Pierluisi said. “Both the Treasury and DACO must ensure that the savings in the tax on crude oil reach the consumer and in the next 15 days or before, the secretary of the Treasury, Francisco Parés, must report compliance with all the steps taken to reduce the impact of this arbitration to the population.”