Puerto Rico governor proposes prepared-food tax exemption

Proposal requires fiscal board approval

Puerto Rico Governor Jenniffer González has proposed exempting prepared food from the sales and use tax as a measure to mitigate the impact of high electricity costs, according to Primera Hora and El Nuevo Día.

The exemption is not in force. González plans to ask the Fiscal Oversight Board to approve it, and the measure could not proceed without the board’s consent.

If approved, the exemption would apply only to prepared food rather than to the sales and use tax generally. El Nuevo Día reported that Puerto Rico’s Treasury Department would implement the change as an administrative action.