The Puerto Rico House of Representatives plans to take an up or down vote on a Senate version of a bill to increase taxes, as the government hustles to prepare a balanced fiscal 2016 budget.
On Thursday the House voted 26 to 24 to approve an increase of the island's sales tax to 11.5% from 7%. It also approved increasing a tax collected at ports on imported goods to 10.5% from 6%. On Monday the Senate first amended the bill to exempt certain processed foods and then approved it.
Usually, the next step would be a conference committee between the House and Senate to arrive at a compromise that both bodies would then vote on. As of 2:10 p.m. on Tuesday, Lillian Maldonado, spokeswoman for House Representative Jesús Santa Rodriguez, said House would only vote up or down on the measure.
The government is counting on a tax increase to help close a greater-than-$1 billion deficit in the next fiscal year, which starts July 1. The government also hopes to show fiscal responsibility, allowing it to sell a $2.9 billion Puerto Rico Infrastructure Finance Authority bond in the near future.
This sale would allow PRIFA to pay off the debt of the Highways and Transportation Authority to the Government Development Bank for Puerto Rico. The GDB would then be able to pay off some of its own debts.
