Puerto Rico Chamber of Commerce Hails House Bill 420 as a Historic Step Toward Eliminating the Inventory Tax
San Juan, Puerto Rico , October 9, 2025 — The Puerto Rico Chamber of Commerce (CCPR by its Spanish acronym) has described House Bill 420 (H.B. 420) as a historic and transformative milestone for the island’s business sector, representing a major step toward the long-awaited elimination of the inventory tax, one of the most burdensome fiscal measures affecting Puerto Rican businesses.
“The Puerto Rico Chamber of Commerce strongly supports the enactment of this bill into law, as it represents a concrete victory for the business community, which for years has called for tax fairness and an environment that promotes sustainable economic growth”, stated Margaret Ramírez Báez, PRCC President.
Approved by both the Puerto Rico House of Representatives and the Senate, H.B. 420 freezes the inventory tax, allowing merchants to increase their inventory levels without the fear of facing additional tax burdens. In a context where operating costs and logistical challenges continue to rise, this measure provides the necessary relief to strengthen supply chains, enhance competitiveness, and ensure product availability for consumers. The legislation further establishes that if the Legislature does not identify a replacement mechanism before 2027, the tax will be eliminated beginning with the 2028 tax year. While this is not an immediate repeal, the Chamber underscored that it marks a firm and decisive step toward the definitive eradication of this outdated tax, correcting a long-standing fiscal distortion that has hindered productivity and local commerce.
“This achievement did not happen overnight. For more than a decade, the Chamber of Commerce has been advocating, educating, and promoting the elimination of this tax, which undermines our businesses’ ability to compete and grow. We recognize this moment as a collective victory for both the private sector and consumers, and as proof that perseverance and unity yield results,” the organization added.
Finally, the CCPR urged Governor Jenniffer González to sign the bill into law, emphasizing that doing so would not only mark a win for merchants and consumers, but also demonstrate a clear commitment to Puerto Rico’s economic development and competitiveness.
“House Bill 420 represents a historic opportunity to transform the way Puerto Rico drives its economic development. The elimination of the inventory tax is an essential step toward strengthening the competitiveness of our businesses, ensuring supply chain stability, and fostering local investment. We respectfully call on Governor Jenniffer González Colón to enact this measure into law, as it goes beyond benefiting merchants — it promotes a future of greater tax equity and sustainable growth for all Puerto Ricans”, concluded Ramírez Báez.
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