House to tackle tax reform in August session

By The Star Staff

House Speaker Carlos “Johnny” Méndez, announced Wednesday that the legislative body will focus on a tax reform that aims to “lower rates for individuals and businesses” during the session that begins in August.

“Our commitment, along with that of Governor Jenniffer González, is to implement the first significant and impactful tax reform in over 15 years. This will be one of the key initiatives we will pursue in the next legislative session—real reform that reduces rates for individuals and businesses, thereby promoting greater economic activity,” said Méndez.

“During my first term (2017-2020), we successfully reduced the tax burden by eliminating the B2B tax (a 2015 tax on transactions between merchants and professional services), repealing the detrimental national patent, removing the inventory tax, and reinstating the senior citizen bonus to support our elderly population. We did not increase any contributions; in fact, we put more money in the hands of the people, which encouraged economic activity,” he added.

In the session that concluded on June 30, the House approved 9 out of 13 measures submitted by the Governor aimed at laying the groundwork for reform, and the remaining measures will be approved in August.

“I want to reiterate my commitment to eliminating the property tax on inventory, commonly known as the inventory tax. One of our priorities in August will be addressing House Bill 420, which proposes to freeze the current rate of this burdensome tax for five years. This inventory tax hinders economic activity, so its freeze is essential for reducing the tax burden on our citizens and is part of our efforts to promote sustained economic development,” Méndez stated.

The Speaker made these comments during the swearing-in of the new Board of Directors, including the incoming president, Margaret Ramírez, of the Puerto Rico Chamber of Commerce (CCPR).

Founded in 1913, the CCPR aims to create sustainable socioeconomic conditions that foster competitiveness for new businesses and promote innovation and entrepreneurship.

During the meeting, Méndez also highlighted that from January to June, during the first session of the House of Representatives, a total of 362 measures were approved. This included 219 bills, 65 joint resolutions, 5 concurrent resolutions, and 73 investigative resolutions, with 82 laws signed into effect.