Puerto Rico governor revives value-added tax proposal – Business – NZ Herald News

SAN JUAN, Puerto Rico (AP) ” Puerto Rico’s governor is reviving his push for a value-added tax despite previous opposition from legislators as concerns grow about the U.S. territory’s economic crisis and the government’s ability to fix it.

Gov. Alejandro Garcia Padilla told reporters Tuesday that legislators from his party are debating a 13.25 percent value-added tax as one option. If that proposal is approved, it would be accompanied by $300 million in budget cuts, he said. But if a lower tax is approved, cuts will increase to $500 million, said Garcia.

“We have reached the point where we have to solve this problem,” he said. “Those who are worried about the crisis have reason to be concerned.”

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