Statement from Lcda. Margaret Ramírez Báez, President of the Puerto Rico Chamber of Commerce, on the Veto of House Bill 420 – Inventory Tax

As President of the Puerto Rico Chamber of Commerce, I wish to express our position regarding Governor Jennifer González Colón’s announced veto of House Bill 420—a measure that sought to freeze and ultimately eliminate the burdensome inventory tax.

The elimination of this municipal tax enjoys broad support—not only from the business sector, but from the general public as well—as it seeks to address and remove one of the most significant obstacles to the Island’s economic development. Our position is clear and remains unchanged: the inventory tax must be eliminated. This has been our consistent stance for nearly two decades, both from our Institution and from various sectors of Puerto Rico’s productive landscape.

With the veto of this bill, we remain in a scenario weighed down by tax burdens that increase the cost of doing business in Puerto Rico. This continues to penalize productivity and restricts the ability of companies to maintain adequate inventory levels—a matter of great concern, especially for an Island that imports over 90% of what it consumes and is vulnerable to hurricanes, earthquakes, and other emergency events that compromise the availability and accessibility of goods in the market.

Alongside the veto, the Governor introduced a new bill that aims to replace the current system within a five-year period. In the meantime, we have made ourselves available to serve as facilitators and collaborators. Puerto Rico cannot aspire to greater competitiveness or economic resilience while maintaining tax structures that punish investment.

We therefore call for prudence from municipal governments and urge them to refrain from raising the annual rates of this tax, as has occurred in recent years. We also encourage the Executive Branch and the Legislative Assembly to maintain open dialogue with the private sector and municipalities in pursuit of a fair, balanced, and sustainable alternative.

Puerto Rico’s economic development is a shared cause, and all sectors must join forces to ensure it is not an impossible goal.