Governor signs moratorium on ‘la crudita’ tax
By The Star Staff
Gov. Pedro Pierluisi Urrutia on Tuesday afternoon signed House Joint Resolution 332, which clarifies the statutes of Joint Resolution 7 of 2022 and establishes a moratorium on the tax on gasoline and diesel oil, known as “la crudita,” for a period of 45 days.
“With this measure we seek to relieve the people and the economic impact on our families due to the increase in fuel prices as a result of the war between Russia and Ukraine, among other factors,” the governor said in a written statement. “The Department of the Treasury, as well as the Department of Consumer Affairs [DACO by its Spanish acronym], are ready to act in accordance with the mandate of the Law.”
The governor noted that as of today, the Joint Underwriting Association (ASC by its Spanish initials) must declare an extraordinary dividend of $50 million from its capital reserve that will be subject to a 50% special tax. Therefore, the ASC will 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. Meanwhile, the Treasury Department will temporarily suspend, up to a limit of $25 million, the addition to the “la crudita” excise tax that will be applicable to existing and available inventory.
While the moratorium lasts, DACO will maintain 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. Likewise, DACO and the Treasury must ensure that the reduction in the tax reaches the consumer and is reflected in the final price paid by the consumer.