Caribbean News Now!

About Us Contact Us

Countries/Territories

Jump to your country or territory of interest

Advertise with us

Reach our daily visitors from around the Caribbean and throughout the world. Click here for rates and placements.

Contribute

Submit news and opinion for publication

Subscribe

Click here to receive our daily regional news headlines by email.

Archives

Click here to browse our extensive archives going back to 2004

Also, for the convenience of our readers and the online community generally, we have reproduced the complete Caribbean Net News archives from 2004 to 2010 here.

Climate Change Watch

The Caribbean is especially vulnerable to rising sea levels brought about by global warming. Read the latest news and information here...

Follow Caribbean News Now on Twitter
Connect with Caribbean News Now on Linkedin



News from the Caribbean:


Back To Today's News

Puerto Rico reports strong start to fiscal year 2015
Published on August 9, 2014 Email To Friend    Print Version

SAN JUAN, Puerto Rico -- Puerto Rico’s Treasury Secretary Melba Acosta Febo has reported that the preliminary revenue for July 2014, the first month of fiscal year 2015, totaled $624 million, exceeding July 2013 revenue by $129 million, or 26%. This number also surpassed July 2014 estimates by $37 million.

melba_acosta_febo.jpg
Treasury Secretary Melba Acosta Febo
Acosta Febo stated, "Preliminary revenues for July 2014 are a good sign for the beginning of fiscal year 2015. Since January 2013, we have been on a steady path towards recovery and fiscal accountability. This month's results strengthen the foundation for Puerto Rico's future economic growth."

Higher collections were driven mainly by a $148 million increase in the foreign corporation excise tax (Act 154). This increase is due in large part to an increase in the tax rate to 4.0% from 2.75% in July 2013, which was the last month that the tax rate was 2.75% (purchases made under Act 154 are reported the following month). Another driver was corporate income tax revenue of $99 million, up $16 million, or 19%, compared to July 2013. This increase was driven by payments of gross receipt taxes, payments by corporations that had filed for an extension, and payments of estimate taxes.

With respect to Sales and Use Tax (SUT) collections, Acosta Febo commented that the approval of Act 18 of 2014 strengthened the Puerto Rico Sales and Use Tax Financing Corporation's (COFINA's) financial capacity by restructuring the SUT so that the state tax rate is 6.0% and the municipal tax rate is 1.0%. In addition, to protect the financial stability of the municipalities, this law established a special fund known as Municipal Administration Fund (MAF), through which the municipalities will continue receiving the economic benefits of the revenues attributable to the 0.5%.

Acosta Febo continued, "July SUT revenues at the 6.0% rate reached $113.7 million, all of which was deposited in COFINA for debt service. For the purposes of comparing July 2014 and July 2013 SUT collections, the SUT figure at 6.0% would be equivalent to $104.2 million at the 5.5% rate. When July 2013 revenues are adjusted by the amnesty's non-recurring amount, which was $12.8 million, the comparable amount totals $98.7 million ($111.5 million - $12.8 million). Accordingly, SUT revenues increased by $5.6 million, or 5.7%."

Excise taxes for motor vehicles, alcoholic beverages, and cigarettes declined on a year-over-year basis. There was also a reduction in the excise tax on off-shore shipments of rum.

"This reduction is due to a decline in the reimbursement per gallon of rum to $10.50 in July 2014 compared to $13.25 in July 2013. It is expected that during this fiscal year, as in previous years, a tax extender will be approved retroactively and this excise tax will again be $13.25 per gallon," she concluded.
 
Reads: 2150





Click here to receive daily news headlines from Caribbean News Now!



Back...

Comments:

No comments on this topic yet. Be the first one to submit a comment.

Back...

Send us your comments!  

Send us your comments on this article. All fields are required.

For your contribution to reach us, you must (a) provide a valid e-mail address and (b) click on the validation link that will be sent to the e-mail address you provide.  If the address is not valid or you don't click on the validation link, we will never see it!

Your Name:

Your Email:

(Validation required)

Comments:
Enter Code



Please note that, if you are using an AT&T domain email address, e.g. att.net, bellsouth.net, sbcglobal.net, the verification email will likely not be delivered. This is outside of our control and the only remedy seems to be for readers to complain to AT&T





Disclaimer
User comments posted on this website are the sole views and opinions of the comment author and are not representative of Caribbean News Now or its staff. Caribbean News Now accepts no liability and will not be held accountable for user comments.
Caribbean News Now reserves the right to remove, edit or censor any comments. Any content that is considered unsuitable, unlawful or offensive, includes personal details, advertises or promotes products, services or websites or repeats previous comments will not be approved.
Before posting, please refer to our Terms of Use and Privacy Policy.



Other Headlines:



Regional Sports: