Lawmaker proposes 90-day suspension of sales tax on prepared food

Rep. Ramón Torres Cruz

By THE STAR STAFF

At-large Rep. Ramón Torres Cruz called on Sunday for a 90‑day suspension of Puerto Rico’s 7 percent sales and use tax (IVU by its acronym in Spanish) on prepared foods, arguing that the measure would provide immediate economic relief to families facing rising living costs.

Torres Cruz said the proposal is supported by recently released data from Treasury Secretary Ángel Pantoja Rodríguez, who reported that net General Fund revenues collected between July 2025 and April 2026 exceeded projections by roughly $590 million.

“The secretary himself confirmed that we have $590 million above what was projected,” Torres said in a written statement. “The IVU on prepared foods generates about $21.3 million per month. A 90‑day suspension would cost around $63 million, a fraction of the surplus the government already has on hand. There is no fiscal reason to deny this relief to Puerto Rican families.”

Torres Cruz argued that the temporary tax holiday would not only ease pressure on consumers but also stimulate commercial activity.

“This proposal gives families the chance to save money on daily expenses, while merchants and restaurant owners see an increase in sales,” he added.

The lawmaker noted further that inflation, higher food prices, and rising service costs have significantly eroded household purchasing power in recent years, a concern shared by both consumers and the restaurant industry.

While acknowledging that any reduction in tax collections requires approval from the Financial Oversight and Management Board, Torres Cruz pointed to precedent: in September 2022, after Hurricane Fiona, the oversight board authorized a temporary suspension of the IVU on prepared foods, a measure then estimated to cost $16.5 million.