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Puerto Rico Seen Collecting Up to $6.7 Billion From Proposed Tax – Bloomberg Business

(Bloomberg) — Puerto Rico would collect as much as $6.7 billion annually from a proposed 16 percent value-added tax, part of a plan to replace sales and use levies.

The projection is outlined in a report from KPMG LLP, which Governor Alejandro Garcia Padilla’s administration hired to calculate ways to boost revenue collection and better tax the U.S. commonwealth’s informal economy.

The figure is almost five times the $1.4 billion of sales-tax revenue that Puerto Rico expects to collect in the fiscal year through June, according to the Government Development Bank, which handles the island’s debt sales and lends to the commonwealth and its localities.

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