July 29, 2021

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“The manufacturing tax is extremely high”

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VERDICT: FALSE In the forum of the candidates for the Resident Police Station in Washington, DC, Luis Roberto Piñero, candidate for the Puerto Rican Independence Party, said that “the manufacturing tax is extremely high” for those local entrepreneurs trying to produce raw materials.

“One of the problems in Puerto Rico is that Puerto Rican entrepreneurs can get a very cheap raw material in different parts of Puerto Rico, but when producing it here, the manufacturing tax is extremely high. That when compared to bringing the product made from the United States, it is not convenient for the Puerto Rican businessman to do it here, ”said the candidate.

Roberto Piñero’s expressions came after proposing to reduce that tax that he cited and impose one on products made in the United States.

The “manufacturing tax” does not exist.

In a post-debate consultation, Roberto Piñero argued that the manufacturing tax is certainly “not a concept that is regularly used in our vocabulary”, but that it was referring in the debate to “taxes in the manufacturing sector, which encompasses everything: the payments of taxes on income, on patents, and the tax of Law 154, which is an excise duty for transactions between subsidiaries of corporations that operate here with others that operate in other countries ”. “In Puerto Rico there is no manufacturing tax,” Kenneth Rivera Robles, the Authorized Public Accountant (CPA) and secretary of the Puerto Rico Industrial Association, told the Center for Investigative Journalism (CPI).

It was also confirmed by the president of the CPA College, Rosa Rodríguez, the president of the Liaison Committee with the College’s Manufacturing, Denisse Flores, and the economist José Caraballo Cueto.

“Under that premise [del candidato]We cannot say that there is a manufacturing tax ”, indicated Rodríguez.

Rivera Robles explained that in Puerto Rico there was an excise duty for general manufacturing until 2006, until the Sales and Use Tax (SUT) was implemented.

Piñero’s assertion is false because in his premise, the candidate argued that Puerto Rican businessmen are charged a high “manufacturing tax” for producing raw materials, when in reality such a tax does not exist.

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