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  • Writer's pictureThe San Juan Daily Star

Senate urged to address tax reform before session’s end

By The Star Staff

The New Progressive Party delegation minority leader in the island House of Representatives, Carlos “Johnny” Méndez Nuñez, along with Rep. Ángel Morey Noble, asked the Senate on Tuesday to address the tax reform.

“We call on the Senate of Puerto Rico, particularly the delegation of the Popular Democratic Party, to urgently address House Bill 1839, as approved by the House of Representatives, which establishes the parameters for a reduction in the tax rates of the island’s working class,” Méndez said in a written statement.

“November 14 is the last day of approval of measures in this ordinary session of the Legislature; there are eight days left and we see no urgency on the part of the Popular Party delegation in this matter,” he added. “If not approved this session, the reform could not enter into force for this tax year that ends on December 31. The PDP is toying with giving tax relief to our people and our small and midsize businesses.”

“We echo the [former] Speaker’s statements,” Morey said. “The reform has to be approved in this session. It passed the House on October 31 and we have not seen concrete action from the Senate Finance Committee on it. It needs to be approved on or before Nov. 14.”

The bill states that households with incomes, whether individual or combined, between $41,500 and $61,500 will see a reduction at a rate of 24%, while those with incomes between $61,500 and $81,500 also fall into the new rate of 24%, thus broadening the base of the tax reduction.

Similarly, the reform includes tax adjustments to alleviate the increase in the Cost of Living Allowance (COLA).

It also increases the deduction per dependent, among other benefits.

The measure passed in the House with 41 votes in favor.

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