The Puerto Rico legislature has voted to postpone a cut in the island's sales tax rate to 6.5% from 7%. The reduction was set to occur on Dec. 1 but is now expected to occur in February.

The reduction would not have affected the revenues of the commonwealth government nor the income of the Puerto Rico Sales Tax Financing Corporation (COFINA) that gathers money to pay back sales tax-backed bonds. That is because the first 5.5% of the sales tax is used first for COFINA and, only after its needs are satisfied, then for the government's general fund.

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