La Fortaleza Chief of Staff and Fiscal Agency & Financial Advisory Authority (AAFAF by its initials in Spanish) Executive Director Francisco Domenech said Thursday that the government has not yet submitted to the Financial Oversight and Management Board the legally required certification detailing the fiscal impact of the recently approved tax relief for the 2025 tax year.
“No, it has not been delivered yet,” Domenech told reporters. “We are still within the timeframe provided by law to submit it, and it is a certification issued by AAFAF regarding the fiscal impacts whenever legislation with fiscal implications is approved.”
The official added that until the certification is submitted, the oversight board will not issue a formal determination on the tax relief measure passed by the Legislative Assembly and signed earlier this week by Gov. Jenniffer González Colón.
“Until we submit the certification, there will be no statement from the board, and that is why I don’t want to go into details,” Domenech added.” These conversations are ongoing.”
Domenech noted that beginning Wednesday afternoon, teams from the Treasury Department, the Office of Management and Budget, and AAFAF had been meeting with oversight board staff “to reach an agreement on where the funds will come from to cover the projected cost of the tax relief.”
He reiterated that the Treasury secretary has certified the availability of more than $881 million, a figure he said does not undermine the government’s fiscal discipline and would cover both the tax relief and the first phase of the tax reform.
“The certification from the Treasury secretary, prepared jointly with the Office of Management and Budget and AAFAF, identifies over $880 million that we believe is available and does not impact the fiscal discipline we are carrying out,” Domenech said.
He added that discussions with the oversight board continue as both sides work toward a final agreement on the specific allocations to be used, but he declined to provide a timeline for the process.
“The conversations continue; they will continue today and tomorrow, and I estimate they will continue for several more days,” he said.
Domenech emphasized that the government remains confident that once the certification is submitted, the oversight board will be positioned to approve the tax relief package.
“We are very optimistic that the conversations are productive and that the board will be in a position to approve the tax relief the governor presented to the people of Puerto Rico,” he said.
FUENTE: San Juan Daily Star
