Bread and cookies do not pay IVU

On February 6, 2007, Primera Hora reported that the House of Representatives approved — with unanimous support — amendments to the Internal Revenue Code to formalize the exemption of bread, rolls and cookies from the Sales and Use Tax (IVU).

Those products were already exempt under Hacienda Regulation No. 7230, but not by statute. Representative José Chico Vega explained that the law taxed “bakery products” without defining the term, so Hacienda used the Streamlined Sales & Use Tax Agreement definition. The PNP majority split into several bills the many IVU exemptions Acevedo Vilá had vetoed in a single package.

The House also approved Senate joint resolutions 775 and 776, which redistribute funds vetoed by “line” — leftovers from an Infrastructure Financing Authority (AFI) bond issue: the veto affected $42.6 million of about $100 million approved. The Popular delegation voted against those resolutions.

José Aponte announced a $100 monthly raise for House employees, a $250 summer bonus and an expanded camp, “with savings” and without a budget increase in two years; Héctor Ferrer called it a pre-campaign political act.

House approval ≠ Governor’s signature. Regulatory exemption ≠ disbursement. Redistributed AFI funds ≠ adjudicated theft.

Source: Primera Hora. https://www.primerahora.com/noticias/puerto-rico/notas/pan-y-galletas-no-pagan-el-ivu/