OPAL finds no fiscal impact from proposed Yule bonus tax exemption, PDP lawmaker says.

Rep. Swanny Enit Vargas Laureano

By THE STAR STAFF

Popular Democratic Party at-large Rep. Swanny Enit Vargas Laureano announced that the Office of Legislative Budget and Analysis (OPAL by its acronym in Spanish) has determined that exempting Christmas bonuses for public and private-sector employees from income tax withholdings would not negatively impact government revenues.

Vargas Laureano said OPAL completed a technical and fiscal evaluation of her proposed legislation, which seeks to authorize the payment of Christmas bonuses without withholding at the source. The evaluation concluded that the measures would not reduce government collections, allowing the bills to move forward in the legislative process without fiscal restrictions.

In an official communication issued by OPAL, the agency stated that the proposals under review do not represent a negative budgetary impact for the central government. As a result, the bills may continue through the legislative process without triggering statutory fiscal limitations.

“Having OPAL’s analysis is an essential step to ensure that every measure advances with the transparency and rigor required in public administration,” Vargas Laureano said. “The evaluation confirms that these proposals can be implemented without a negative fiscal impact, allowing the discussion to focus on their merits and the benefits they represent for the working class.”

Vargas Laureano noted that the next step lies with the House Treasury Committee, which is chaired by Rep. Eddie Charbonier Chinea, who will determine whether the proposal is brought forward for a vote.

She emphasized that the measures have broad support among workers and labor organizations across the island. She said she has held conversations with numerous labor unions and employee groups, “and all have voiced support for approving these measures.”

“These bills would put Puerto Rican workers in a better position to manage the expenses associated with the Christmas season,” Vargas Laureano added.

The lawmaker also highlighted the broader economic implications of the proposals, noting that increased disposable income during the holiday season could have a positive effect on the island’s commercial sector.

“Beyond providing direct relief to workers, these measures strengthen our economy during one of the most critical seasons for the retail and service industries,” she said.