Puerto Rico Gov. Alejandro García Padilla said Aug. 28 that a Puerto Rico tax reform proposal will be ready in October, which would be sooner than had been anticipated.
Puerto Rico Secretary of the Treasury Melba Acosta Febo is chairing a taskforce developing the proposals.
Whereas it was originally anticipated that the taskforce would present its ideas in December, the governor now expects the recommendations in October, a source close to the governor said. Once the recommendations are submitted, the governor's staff will draft a bill to be considered by the legislature.
The source in the governor's office said the legislature is expected to pass the tax reform by the end of November. The tax reform would go into effect on Jan. 1, 2015.
The taskforce is planning to revise Puerto Rico's corporate, personal income and sales taxes.
It is unclear what the impact of the tax reform will be on revenues in the second half of the fiscal year, the governor's source said.
The tax reform will be aimed at promoting sustainable economic development, providing greater certainty to industry, and encouraging strategic sectors such as manufacturing and small and medium enterprises. The reform is also supposed to be fair and equitable, encourage work, and facilitate the government's fight against tax evasion.
An outside consultant that has worked with Puerto Rico for many years is aiding the taskforce, the governor's source said.
