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On Monday, Governor-elect Jenniffer González Colón unveiled the establishment of the Tax Reform Committee, which comprises financial and governmental specialists tasked with formulating a new Internal Revenue Code.
The committee’s main aim is to examine and streamline the commonwealth’s taxation framework, reform public finances, and alleviate the financial pressures on the middle class, thus reducing the tax burden on citizens.
This committee consists of highly experienced professionals, including former treasury secretaries. Its members feature certified public accountant (CPA) Xenia Vélez, CPA Teresita Fuentes, and the current deputy secretary of the Treasury, Ángel Pantoja Rodríguez. Additional members are Margarita Serapion, lawyer and CPA Manuel López Zambrana, CPA Cecilia Colón — who previously served as president of the Certified Public Accountants Association of Puerto Rico — and lawyer and CPA Oriol Campos.
“I am dedicated to providing Puerto Ricans with a fairer and more effective tax system, focusing on the middle class, which faces significant economic challenges daily,” González Colón stated. “This committee will work to identify and suggest the necessary reforms to minimize tax burdens, particularly in critical areas such as capital gains and both individual and corporate rates as outlined in the NPP [New Progressive Party] government agenda.”
The committee will provide guidance to the governor concerning matters such as decreasing tax rates, which includes evaluating the inventory tax and considering alternatives for its replacement. Additionally, it will address the sensitive topic of the Global Minimum Tax to enhance Puerto Rico’s competitiveness. It will also suggest methods to simplify tax procedures at both state and municipal levels, promoting a culture of savings through better incentives for individual retirement accounts (IRAs) and other financial initiatives.
González Colón emphasized that this initiative is vital for reshaping Puerto Rico’s fiscal framework, enhancing the island’s competitiveness and encouraging economic growth.
“Tax reform is a crucial element in creating a more prosperous Puerto Rico for our citizens, with a stronger middle class [facing fewer] tax burdens,” she affirmed.
The advisory committee will commence its work promptly after González Colón takes office as governor on January 2.
The committee members, along with their qualifications, are as follows:
Xenia Vélez: A past treasury secretary with extensive expertise in fiscal matters and industrial incentives in Puerto Rico, as well as taxation on international transactions in the United States. She has been actively involved in legislative and regulatory development at both federal and local levels.
Teresita Fuentes: A former treasury secretary with over 30 years of experience in tax and administrative issues across public accounting and government.
Ángel Pantoja Rodríguez: The deputy secretary for internal revenue and tax policies in the Treasury Department of the island. He has experience as a legal advisor in the private sector, focusing on corporate and tax law.
Margarita Serapion: One of the pioneering women to earn the title of certified public accountant in Puerto Rico and the first to lead a professional organization on the island. She possesses over three decades of experience in tax practice.
Manuel López Zambrana: Provides counsel to clients across various sectors, including finance, manufacturing, insurance, telecommunications, and more. He also offers guidance on intricate federal and local tax issues.
Cecilia Colón: The sixth woman to lead the Certified Public Accountants Association of Puerto Rico.
Oriol Campos: A member of the government’s Incoming Transition Committee, he is a lawyer, accountant, former administrator of the House of Representatives, and consultant on legal, administrative, and financial public policy.
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