The Fiscal Oversight Board publishes a report on the fiscal cost of corporate exemptions

The Fiscal Oversight Board (JSF), chaired by David A. Skeel Jr. and with the executive direction of Robert F. Mujica Jr., published its annual Tax Expenditure Report, in which it quantified the fiscal cost and the collections the government did not receive because of the multiplicity of exemptions, deductions, and tax credits in force.

The technical document of the body created under PROMESA estimated that the exemptions granted under the Incentives Code (Ley 60 of 2019) and prior laws represent a potential loss of billions of dollars a year for the General Fund. The report examined the return-on-investment (ROI) performance in pharmaceutical manufacturing, tourism development, and the decrees for foreign individual investors.

Executive director Robert F. Mujica Jr. noted that although certain industrial incentives are indispensable to sustain high-technology manufacturing, Puerto Rico's tax framework requires an integral simplification that would widen the tax base and allow a reduction in the marginal rates paid by middle-class wage workers. The report was sent to the Legislative Assembly and the Department of Hacienda for evaluation.

Source: Caribbean Business. https://caribbeanbusiness.com/junta-supervision-fiscal-publica-informe-gastos-tributarios-exenciones/