Puerto Rico's fiscal year 2016 revenues came in 6.4% short of its approved budget for the fiscal year.
The Treasury Department on Friday said $9.175 billion entered the government's General Fund in the fiscal year that ended June 30, the day before the commonwealth and its public bodies defaulted on $911.4 million in bond debt due.
The budget had been approved for $9.8 billion in revenue. The final revenue figure was also 1.3% shy of the Treasury's revised estimate in December, after revenues had come in lower than expected for several months.
While the collection was lower than projected, it was 2.4% higher than the previous fiscal year, mostly due to increased revenue from the island's sales and use tax, the Treasury said. Starting on July 1, 2015, the tax rate increased to 10.5% from 6%. The island's municipalities have a 1% sales and use tax. As a result, the rate paid by consumers jumped to 11.5% from 7%.
Puerto Rico also introduced a 4% business to business and designated professional services tax on Oct. 1.
Total sales and use tax revenues were $2.376 billion, an increase of $960 million from the previous year. Of this total only $89 million was due to the new B2B/professional services tax.
Of the sales and use tax revenue $1.560 billion went to the General Fund, $933 million more than the previous fiscal year. A total of $696 million went to the Puerto Rico Sales Tax Finance Corp. (COFINA) and lesser amounts went to other purposes.
Compared to the December revenue projections, the biggest shortfall was in non-resident withholding, which came in $40 million below the estimate. The biggest exceedance was in the excise tax on the off-shore shipment of rum, which came in $36 million high.
Compared with the previous fiscal year, the sales and use tax revenue had the greatest jump. The two biggest declines came in individual income tax receipts, $292 million less, and the others tax category, $222 million less.
