PIP lawmaker denounces inaction on global minimum tax

Rep. Denis Márquez Lebrón

By The Star Staff

The lack of government action to deal with the implementation of the global minimum tax (GMT) puts thousands of jobs and the economy at risk, warns Puerto Rican Independence Party Rep. Denis Márquez Lebrón.

Various sectors, including Espacios Abiertos, which conducted a comprehensive study on the issue, have warned that the government must start developing a new tax policy in response to the changes that will arise with the GMT’s implementation, the lawmaker said late last week.

“Due to this failure to act in a timely manner, over 10,000 manufacturing jobs could be endangered,” Márquez Lebrón said. “These jobs are held by employees of European companies operating in Puerto Rico, which are already subject to the GMT in their respective countries. The secretary of the Department of Economic Development has even acknowledged this situation.”

Moreover, Puerto Rico is losing the chance to contribute over $3.8 billion to its public finances, he added. “The current tax rate of 4% paid by foreign manufacturing companies in Puerto Rico is significantly lower than the 15% GMT imposed by their home countries. As a result, countries such as England and Germany will see an increase in their tax revenue, as companies from those nations that have subsidiaries in Puerto Rico will not pay their fair share here due to the government’s failure to enact the necessary legislation to collect that tax, Márquez Lebrón pointed out.

Such inaction is not merely a product of the administrative and governmental incompetence historically associated with the two-party system, he added.

“It also highlights the urgent need to confront the issues of political and colonial subordination that allow such situations to arise,” the pro-independence legislator said. “A government that, out of fear of Donald Trump’s policies, refuses to advocate for Puerto Rico is failing its people. This is a critical issue, and if we do not take action now, the future scenario will be detrimental for the country. There is simply no excuse for this inaction.”