Governor: IVU exemption extended until Oct. 13
By The Star Staff
Gov. Pedro Pierluisi Urrutia announced Wednesday that the temporary exemption on the sales and use tax (IVU by its Spanish acronym) for prepared foods and other items has been extended until Oct. 13.
The IVU exemption applies to prepared foods, carbonated drinks, deserts and sweets, the governor noted on his social media sites. The exemption does not include alcoholic beverages.
Earlier in the day Treasury Secretary Francisco Parés Alicea asked the Financial Oversight and Management Board to extend the exemption for an additional week.
“A draft administrative determination extending the term for an additional week is before our colleagues on the Fiscal Control Board,” Parés Alicea said at a press conference. “They will enter into their rigorous analysis of the $5 million in a budget of $12 billion.”
The oversight board approved the extension later in the day, the Treasury chief announced.
“We recognize that electricity has not yet reached the entire population,” Parés Alicea added. “These exemptions must be evaluated and the governor is not going to hesitate.”
Asked if the Treasury Department will apply discounts and aid in payroll, Parés Alicea said “the government has responded significantly from the economic perspective since Hurricane Georges and all the storms we have experienced in the 21st century.”
The Treasury secretary added that the government has already used $100 million from the Emergency Fund.