Puerto Rico Gov. Alejandro García Padilla hasn't yet decided whether he will sign oil tax rise legislation approved by the legislature that would support the Puerto Rico Highways and Transportation Authority.
The governor will evaluate the bill before possibly signing it, a source close to the governor said Tuesday. Along with increasing taxes on imported oil the bill would lead the Puerto Rico Infrastructure Finance Authority to sell a bond up to $2.9 billion in size.
The governor had called for the oil price increase to $15.50 per barrel from $9.25 per barrel, which is included in the bill.
In order to get the votes to pass the bill, legislators from his Popular Democratic Party agreed to certain additions. Among these were to cap the interest rate on the bonds at 8.5% and promise certain tax cuts for the lower middle class.
While passage of the bill, "constitutes a step in the right direction, the legislative assembly approved a version of the bill that has certain shortcomings," Government Development Bank for Puerto Rico President Melba Acosta Febo and chairman David Chafey wrote in a statement. "We look forward to continue working with the legislature to address these important matters, in a consensual and constructive manner, in order to achieve the administration's goals."
The House of Representatives barely approved the final version of the bill — and only with the help of the vote of Pedro Julio "Pellé" Santiago, a member of the opposition New Progressive Party.
Santiago's vote for the oil tax rise bill has raised the ire of his party's legislators. Pedro Perluisi, president of the New Progressive Party and Puerto Rico's nonvoting representative in the United States House of Representatives, told a radio station that Santiago's action was unpardonable and that Santiago should resign his seat immediately.
El Vocero web site reports that NPP Puerto Rico House member Jose Aponté Hernandez has called for the establishment of a special commission to look into Santiago's vote. Aponté Hernandez, who as NPP Secretary has the second most powerful position in the party, has also called for Santiago to resign.
NPP Puerto Rico House member Carlos "Johnny" Méndez Núñez said the party should evaluate expelling Santiago.
