Puerto Rico News Digest For May 26, 2015

SENATE PASSES SALES TAX BILL

From Bloomberg:

Puerto Rico’s Senate approved a bill, with amendments, that increases
the cash-strapped island’s sales tax, potentially raising revenue that will
help balance the fiscal 2016 budget.The Senate passed the measure Mon-
day in a 14-12 vote, with an amendment to exempt certain processed foods.
The amended bill now goes back to the House of Representatives, which
narrowly approved the sales-tax hike last week. Governor Alejandro Gar-
cia Padilla and lawmakers from his ruling Popular Democratic Party agreed
on a framework for the tax boost May 14. The bill would raise the levy to
11.5 percent from 7 percent through March, after which it would transition
into a value-added tax.

SOCIAL PROGRAMS FACING CUTS

From The San Juan Daily Star:

The island government intends to cut over $55 million from non-profit
organizations, social programs and college scholarships as part of the
$674 million in cuts in the new budget. The cuts will affect more than
120 public and non-profit organizations and programs in Puerto Rico as
government allocations will be  reduced to about $75 million from about
$130 million. La Fortaleza Chief of Staff Víctor Suárez said many agen-
cies may engage the services of some of these entities.

PUERTO RICO COMIC CON A SUCCESS

From Caribbean Business:

The Puerto Rico Comic Con (PRCC), touted as the premier entertain-
ment and pop culture event in the Caribbean, filled the Puerto Rico
Convention Center during its latest edition held this past weekend,
along the way generating about $4 million in economic activity, acc-
ording to estimates. Ricardo Carrión, executive producer of the PRCC,
told local media outlets that at least 38,000 people attended the event
this year, which took place May 22-24. The annual event has steadily
drawn larger crowds since its inception in 2002. Part of the larger atten-
dance numbers stemmed from the organizers’ decision to extend the
event to three days, starting Friday; previous editions were held only
Saturday and Sunday. Carrión added that, on Friday alone, the event
drew in about 9,000 people.

PANEL TACKLES HIGH ENERGY COSTS

From News Is My Business:

In the United States, electricity costs 10¢ to 12¢ per kilowatt-hour
(kwh), while in Costa Rica, it’s 15¢ per kwh and higher in Honduras
and Nicaragua, Central America’s poorest countries. Yet a top State
Department official said the region is now in an ideal position to cut
costs by introducing alternative sources like natural gas and renewable
energy. “Things that five years ago were not even possible are availa-
ble today. Some methods of transporting containerized natural gas ha-
ve come down in cost considerably,” said Robin Dunnigan, deputy
U.S. assistant secretary for energy diplomacy. Dunnigan was one of
four officials who spoke at a May 7 conference hosted by Washing-
ton’s Inter-American Dialogue. Nearly 150 people attended the pa-
nel, “Ener-gy in Central America and the Caribbean,” including di-
plomats from 13 Washington-based embassies.

RESERVOIR LEVELS FOR TODAY

Carraizo is on the far left, in yellow. No significant rain is expected
over the area for several days.

Puerto Rico News Digest For May 22, 2015

HIGLER'S FAMILY IN PR FOR HEARING

L: Laurens Higler. R: Gerardo de La Paz.

Relatives of Laurens Higler, the Dutch globetrotter and sailor who was
killed in a hit and run car accident in  March, are in Puerto Rico to attend
a court hearing for 49-year-old Gerardo De La Paz, the man accused of
hitting Higler with his car by the side of the road in Guayama and fleeing
the scene. Mother Rianne Higler stated "It is unforgivable that he didn't
stop the car, that he didn't call 911 and that he didn't help my son", in re-
gards to De La Paz, as reported yesterday by El Nuevo Dia. Laurens
Higler would have turned 27 years old on May 20.

At the hearing, De La Paz -- who is free but wearing an ankle monitor --
opted to go directly to trial for the charges of negligent homicide and vio-
lating the recently amended Article 5.07 of Transit Law 22. He was also
driving with an expired driver's license. The judge set the trial date for
June 26. De La Paz could face prison time, but there is  also the possibility
that he might only get a suspended sentence. After the hearing, De La Paz
agreed to meet the late Higler's family in private, but after the brief encoun-
ter, De La Paz hurried out of the building accompanied by his lawyers.

HOUSE APPROVES 11.5%  'IVU' TAX

From Caribbean Business:

After much debate and opposition, the House of Representatives app-
roved Thursday the tax bill that calls for the implementation of an
11.5% sales tax at cash registers, up from the current 7% paid under
the sales & use tax (IVU by its Spanish acronym), after introducing
several amendments on the floor. The final vote count was 26 in favor
and 24 against, including two Popular Democratic Party (PDP) legisla-
tors, Reps. Carlos Vargas and Angel Matos, and the New Progressive
Party minority delegation. It now moves to the Senate, where discussi-
on on the amended bill is expected to take place Friday, with the upper
chamber's session slated to begin at 10 a.m.

ACOSTA BLASTS MOODY'S GDB DOWNGRADE

From News Is My Business:

Government Development Bank President Melba Acosta came down
hard on Moody’s Investors Service’s decision to downgrade the Co-
mmonwealth’s credit rating deeper into junk status by saying the move
shows “ratings agencies are totally out of tune with what’s happening”
in Puerto Rico. Reading off an email she said she received earlier in the
day from a banker who expressed to her that markets were reacting fa-
vorably to the proposed increase in the sales and use tax — up to 11.5
percent from 7 percent approved Thursday by the House — and about
the budget, Acosta called Moody’s decision “a bit ironic.”

BUS OWNERS INDICTED FOR BID-RIGGING

From FBI:

A federal grand jury in San Juan, Puerto Rico, returned an indictment
against five individuals for participating in bid rigging and fraud cons-
piracies at an auction for public school bus transportation contracts in
Puerto Rico’s Caguas municipality, the Department of Justice announ-
ced today. A seven-count felony indictment was filed yesterday in U.S.
District Court of the District of Puerto Rico in San Juan against five bus
transportation company owners: Gavino Rivera-Herrera, Luciano Vega-
Martínez, Alfonso Gonzales-Nevarez, José L. Arroyo-Quiñones and
René Garay-Rodríguez.

Count one charges the bus owners with participating in a conspiracy
to rig bids and allocate the market for public school bus transportation
services in the Caguas municipality. The second count charges the bus
owners with conspiracy to commit mail fraud and counts three through
seven charge the bus owners with committing mail fraud. According to
the indictment, the defendants and others defrauded, and conspired to
defraud, the Puerto Rico Department of Education and the Caguas mu-
nicipality, among others, in order to fraudulently obtain contracts for
school bus transportation services.

PR Government Files Budget For 2016

Caribbean Business

LUIS J. VALENTÍN & DENNIS COSTA

The Puerto Rico government submitted to the Legislature a $9.8 billion 

budget proposal Wednesday that calls for $674 million in spending cuts 

amid the island's fiscal crisis. The submitted budget bill for fiscal 2016 

contemplates a consolidated budget of $28.8 billion, $9.8 billion of which 

would correspond to the commonwealth's General Fund. It is about $235 

million higher than the current fiscal year's budget. The bill, which pro-

poses $674 million in government spending cuts, also allocates about 

$1.54 billion toward servicing the commonwealth's debt, an increase of 

$400 million over the previous year's budget.

The budget proposal also includes clauses that tie it to the tax bill being 

considered in the House, which calls for increasing the 7% sales & use 

tax (IVU by its Spanish acronym) to 11.5%...[CONTINUE READING]

Puerto Rico News Digest For April 30, 2015

TAX REFORM FAILS IN HOUSE 

From Caribbean Business:

After a session that ran past 3 a.m. Thursday, the Puerto Rico
House of Representatives voted down the tax reform bill after
failing to secure enough votes from the Popular Democratic Party
(PDP) majority.Along with the New Progressive Party minority
delegation, PDP Reps. Luisa Gándara, Manuel Natal, Carlos Var-
gas, Ángel Matos, Luis Raúl Torres and Luis Vega Ramos all
voted against the measure. The final vote count was 22 in favor
and 28 against.

JUDGE STOPS GAY MARRIAGE RULING

From The San Juan Daily Star:

San Juan Superior Court Judge Ángel Pagán Ocasio paralyzed a ru-
ling on a lawsuit filed by several New Progressive Party (NPP)
lawmakers who are demanding that the governor defend current law
that declares gay marriage illegal. Pagán Ocasio said he wants to
wait for the U.S. Circuit of Appeals in Boston, which paralyzed
another lawsuit seeking to legalize gay marriage in Puerto Rico
pending a U.S. Supreme Court ruling on the matter. The government
decided that it was not going to defend the island’s anti-gay ma-
rriage laws as part of a lawsuit fi led by civil rights activist Ada
Conde and her wife, who were married in the mainland U.S. As
a result, several NPP lawmakers went to court to demand that the
government defend current law.

$1.9M IN COCAINE SEIZED NEAR PR

From Yahoo! News:

Authorities in Puerto Rico have seized nearly 150 pounds (68 kilo-

grams) of cocaine near an uninhabited island just west of the U.S. 

territory. U.S. Customs and Border Protection said in a statement 

Wednesday that the drugs are worth an estimated $1.9 million. 

INVESTORS OFFER PREPA 30-DAY EXTENSION

From Bloomberg:

Investors in the debt of Puerto Rico’s power utility have offered 

a 30-day extension of a creditor agreement that expires Thursday, 

according to a person with knowledge of the situation. Prepa, as 

the Puerto Rico Electric Power Authority is known, has $8.6 billion 

of securities. Under the bondholder offer, the electricity provider 

would give creditors a restructuring plan by June 1, said the person,

who requested anonymity because an agreement hasn’t been reached.

Puerto Rico News Digest For April 29, 2015

JEB BUSH SUPPORTS STATEHOOD, CHAPTER 9

From News Is My Business:

Former Florida Gov. Jeb Bush, who is expected to announce his run
for the U.S. presidency in 2016, expressed his support Tuesday for
Puerto Rico’s statehood as well as its right of its government
agencies to file for bankruptcy protection under Chapter 9 of the
U.S. tax code. During a visit to the island, sponsored by former
Puerto Rican Gov. Luis Fortuño, Bush also spoke of economic oppor-
tunity and the “Right to Rise” as the central moral promise of
American economic life. Bush spoke to faculty, students and guests
at the Metropolitan University of Puerto Rico amphitheater while
his message was transmitted via live webcast to the entire student
population of 44,000 including campuses in Dallas, Orlando, Tampa,
South Florida and Wheaton, Maryland.

HOUSE PREDICTED TO PASS TAX REFORM

From The San Juan Daily Star:

As the STAR reported last week, Gov. Alejandro García Padilla
may very well deliver his budget message on Wednesday or Thurs-
day, possibly before the House of Representatives is expected to
bring the tax reform to the floor for a vote no later than Fri-
day. In a TV interview, political analyst Luis Pabón Roca said
his sources are telling him that the House will vote 14 to 10
in favor of the tax reform on Friday. “They are giving them
[lawmakers who are infavor of the tax reform] the space to work
on getting the votes they need to pass the legislation,” he said.
“The bill increased to over 2,000 pages, and the votes that were
difficult to get are [being persuaded] by including these amend-
ments. … I understand that they will vote in favor of or against
it this week.”

GOVERNOR TO DELIVER STATE OF PR ADDRESS

From Caribbean Business:

Gov. Alejandro García Padilla will offer his State of the Common-
wealth address Thursday, La Fortaleza announced Tuesday. García
Padilla will speak at 5 p.m. Thursday on the floor of the House of
Representatives. The message will be broadcast live on Puerto Rico
TV (Channel 6) and streamed online at www.fortaleza.pr.gov, www.
camaraderepresentantes.org and www.senado.pr.gov.

CONDADO HOTEL ABRUPTLY CLOSES

From Fox Business:

A large hotel in one of the main tourist districts of Puerto Rico has
abruptly announced that it will close. Puerto Rico Hotel and Tourism
Association President Miguel Vega says the Radisson Ambassador
Plaza in the Condado district of San Juan will close Wednesday. He
said it will result in the loss of about 200 jobs.

Puerto Rico News Digest For April 23, 2015

GOVERNMENT SHUTDOWN IN THREE MONTHS 

From Reuters:

Puerto Rico's top finance officials said the government of the U.S.
territory will likely shutdown in three months because of a looming
liquidity crisis and warned of a devastating impact on the island's
economy. In a letter to leading lawmakers, including Governor Ale-
jandro Padilla, the officials said a financing deal that could po-
tentially salvage the government's finances currently looked unlike-
ly to succeed. It warned of laying off government employees and re-
ducing public services."A government shutdown is very probable in
the next three months due to the absence of liquidity to operate,"
the officials said. "The likelihood of completing a market transac-
tion to finance the government's operations and keep the government
open is currently remote."

THOUSANDS WITHOUT MEDICATION DUE TO BUDGET

From Fox News Latino:

Thousands of Puerto Ricans with serious medical conditions enrolled in
the government-sponsored Mi Salud program are not receiving the medica-
tions they need because of the financial problems at state-owned insurer
ASES, which owes millions of dollars to providers. Lawmaker Jose Aponte,
a leader of the main opposition PNP party, told Efe that because ASES
owes money to the insurance companies that provide health-care services,
the companies, in turn, do not authorize payments to pharmacies for medi-
cations.

TAX REFORM BILL STILL LACKS VOTES

From The San Juan Daily Star:

The amended version of Tax Reform that has been filed in the island 

House of Representatives appears not to have the needed votes for 

approval for reasons rangingfrom the proposed 14 percent rate for the 

value-added tax to the payment mechanism to give municipalities their 

share of the tax. As of Tuesday, at least four legislators still opposed 

the measure. Majority Leader Carlos Hernández said at a news con-

ference held a day earlier that no vote count had been taken. Some 

lawmakers said they will not decide on their vote until they read and 

evaluate the whole bill with changes included to enable a better ana-

lysis. 

SEVEN MIGRANTS APPREHENDED IN AGUADILLA

From Latin Post:

U.S. Customs and Border Protection (CBP) apprehended seven Domini-

cans attempting to enter Puerto Rico illegally with a boat, according to 

a CBP press release. A local resident notified Puerto Rico Police about 

a boat approaching Bienvenidos beach in Aguadilla. Police contacted 

CBP reporting that a "yola," a powered makeshift  raft, had been spotted 

with an unknown number of passengers in the area. When CBP officials 

and police officers arrived at the scene they found a 20-foot yola powered 

by a 40 horsepower outboard motor. However, the passengers were not 

in sight. With the help of patrol aircraft, CBP and police found the seven 

immigrants in a near by area.

TROOPS FROM FORT BUCHANAN DEPLOYED TO M.E.

From Caribbean Business:

Approximately 21 soldiers assigned to the 271st Human Resources Company, 

U.S. Army Reserve-Puerto Rico, departed the island Wednesday on their way 

to a mobilization station in Texas before arriving to the Middle East. "I 

believe in all of you. We did an excellent job during our pre-mobilization 

training and I know we will accomplish our mission," said 1st Lt. Ayesha 

Jiménez, officer in charge of the detachment. The unit will manage the 

Theater Casualty Assistance Center, which oversees casualties across the 

Middle East.

Puerto Rico News Digest For March 13, 2015

CUBAN MIGRANTS RESCUED FROM MONITO

Photo: U.S. Coast Guard

From Local 10:

The U.S. Coast Guard rescued eight Cuban migrants from Monito Island,
Puerto Rico Wednesday afternoon, following a two-day rescue effort in the
Mona Passage. Authorities said the seven men and woman were spotted
Tuesday afternoon by a Coast Guard  pilot who was on a routine patrol
in the Mona Passage. Authorities said the group was stranded at the
bottom of a 150-foot  cliff of the uninhabited island, which is a natural
reserve and serves as a bird habitat.

DUTCH TRAVELER KILLED IN HIT AND RUN

Globetrotter and sailor Laurens Higler, age 26, was killed this
morning on Road 3 in Guayama after being struck by a car. The
driver fled the scene after the incident.  The deceased, who was
from Holland, was stopping off in Puerto Rico during his travels
around the globe.  Police have stated that they have recovered
physical evidence which could lead them to the driver who struck
Higler.

GOVERNOR DEFENDS IVA TV MESSAGE

From The San Juan Daily Star:

Gov. Alejandro García Padilla on Wednesday defended his most recent
pre-recorded televised message, in which he justified his proposed tax
reform and the 16 percent value added tax. “What this message was
about, at the end of the day, is to be  able to speak to people directly,
and there is a public purpose that is priceless,” García Padilla said in
TV interview. “We are talking about a profound transformation and
all transformations convey resistances.”

EIGHT MURDER VICTIMS IN LESS THAN A WEEK

As reported today by El Vocero, eight people were killed -- mostly in
shootings -- between Tuesday afternoon and early Friday morning.
The incidents were reported in Hato Rey, Santurce, Yabucoa, Bayamón
and San Lorenzo. This week's murders bring the total for the month to
20, five more than at this time last year. So far, 103 violent deaths have
been registered in Puerto Rico, 27 less than last year.

MOODY'S DOWNGRADES UPR BONDS

From Caribbean Business:

Moody's Investors Service said it downgraded $489 million of  University
of Puerto Rico University system revenue bonds to  Caa2 from Caa1 and
$73 million of educational facilities revenue bonds, 2000 Series A issued
through AFICA to Caa3 from Caa2. The outlook is negative.

The rating differential between the university system revenue bonds and
the educational facilities revenue bonds reflects the subordinate pledge
and lease structure of the educational facilities revenue bonds.

DORAL BANK GOES TO CHAPTER 11 BANKRUPTCY

From Reuters:

Doral Financial Corp filed for Chapter 11 bankruptcy protection  on
Wednesday to wind down its remaining operations two weeks after its
Puerto Rico-based bank subsidiary was seized by regulators. Doral
Financial's bankruptcy is the latest reminder of the financial crisis on
the island, a U.S. commonwealth, which has been mired for years in
an economic slump. The bank has also been dogged by accounting
problems and an employee was recently indicted for money laundering.



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Puerto Rico News Digest For March 11, 2015

PLANE RECOVERED FROM CONDADO LAGOON

As reported by Noticel, a Piper PA-23 aircraft that crashed into
Condado Lagoon in San Juan on Monday afternoon has been re-
covered.   Pilot Rafael Pesquera, age 49, and co-pilot Ramón
Garida, also 49, were not seriously injured. Authorities dragged
the fallen aircraft to the shore of the lagoon yesterday, and it will
be taken to Isla Grande airport once fuel and the wings are remo-
ved. The exact cause of the accident is unknown, but apparently
the plane's engines stopped functioning not long after takeoff
from Isla Grande.

SOME INMATES TO LOSE VOTING RIGHTS

As reported today by El Vocero, the Chamber of Representatives
passed a bill last night that would strip prison inmates convicted
of major offenses of the right to vote in Puerto Rican elections.
Representative Carlos Vargas was behind the measure, and was
ableto get the votes to pass it as part of a deal in which he would
vote for the proposed oil tax increase, or "crudita". It is unknown
whether Governor Alejandro Garcia Padilla will sign the bill.

LOWERING IVA ON SOME ITEMS CONSIDERED

From The San Juan Daily Star:

After meeting for several hours with House leaders, Gov. Alejandro
García Padilla is now accepting the idea of amending Tax Reform to
possibly introduce reduced rates of the value-added tax to certain
products and services and obtain needed votes in the House to pass
the bill. House Speaker Jaime Perelló and Majority Leader Charlie
Hernández met with the governor hours before he was slated to go
to the airwaves in support of his tax reform.

PR JOINS DIET SUPPLEMENT PROBE 

From The Chicago Tribune:

Dietary supplements are facing more scrutiny from U.S. regulators
as two states and Puerto Rico joined New York in a probe of the
$33 billion industry after testing showed some products didn't
appear to contain key ingredients advertised. Attorneys general in
Connecticut and Indiana and the Puerto Rico Department of Consumer
Affairs will investigate industry business practices and whether
claims of authenticity and purity are valid, Attorney General Eric
Schneiderman said Tuesday in a statement.

CLARO EXTENDS BROADBAND IN YAUCO

From News Is My Business:

Telecommunications company Claro announced Monday it has extended
broadband services to eight sectors in the town of Yauco, where a
combined 965 families will have access to the benefits associated
with high-speed Internet. The sectors of Algarrobo, Caimito,
Collores, Rancheras, Cotuy, Diego Hernández, Aguas Blancas, Naranjo
and Carrizales in Yauco join the initiative being bankrolled by the
Federal Communications Commission to boost rich broadband across
regions.

Puerto Rico News Digest For March 5, 2015

PROTESTS AGAINST IVA AT CAPITOL

Video: Maria Rivera/YouTube

People from dozens of educational and community organizations are
protesting this morning in front of the Capitol in San Juan against the
proposed 16% Value Added Tax (or IVA, by its Spanish initials).
Schools and colleges have been particularly vocal in their opposition
to the idea of applying the new tax to educational expenses. Governor
Alejandro Garcia Padilla announced last week that the tax proposal
would be ammended to spare private education from the IVA, but
representatives from several organizations opposed to the tax have
expressed skepticism regarding that promise, as reported by El Nuevo
Dia.

DECOLONIZATION PROTEST MAR. 22 IN SAN JUAN

The pro-independence organization Comrades United For The De-
colonization of Puerto Rico ("Compañeros Unidos Para La Desco-
lonizacion de Puerto Rico") will be holding a protest march on
Slavery Abolition Day, March 22nd, at 2:00 PM. The protesters will
demand the release of Puerto Rican "political prisoner" Oscar Lopez
Rivera, as well as the decolonization of the island. The "2nd Oscar-
Mandela March" will start at the Capitol building in Old San Juan
and make its way towards the Federal Court building.

OIL SUPPLIER TO FACE JUSTICE DEPT

From The San Juan Daily Star:

The Special Senate Committee investigating the so-called “oil
cartel” at the Puerto Rico Electric Power Authority (PREPA)
referred Petro West Inc. to the Justice Department on Tuesday
after accusing it of aggravated illegal appropriation for vir-
tually stealing $1.4 million from the public utility.Petro West
is a local company with offices in Mayagüez and Hormigueros
that supplied bunker six fuel to PREPA, but it was not imme-
diately known if they still do. The probe found that the alleged
illegal appropriation took place between 2009 and 2011.

SINGAPORE COMPANY TO OPERATE PONCE PORT

From Fox News Latino:

Portek International, a Singapore-based services company, was
selected to develop infrastructure at Puerto de las Americas in
Ponce, the largest city in southern Puerto Rico, officials said.
"We have carefully evaluated offers from different companies that
showed interest in the project," Secretary of Economic Development
and Commerce Alberto Baco, who serves as chairman of the Puerto
de Ponce Authority board, said.

EMBASSY SUITES BEGINS MAJOR RENOVATION

From News Is My Business:

Embassy Suites hotels in Puerto Rico announced Wednesday the
completion of the first phase of a renovation campaign at the
Isla Verde and Dorado properties. The overhaul included a full
makeover of all 299 suites at the San Juan hotel and bathroom
upgrades in all suites at the Dorado resort. The investment made
to reboot the properties was not disclosed.

Puerto Rico News Digest For February 19, 2015

THREE DEAD IN COROZAL SHOOTINGS

According to El Nuevo Dia, three individuals died last night as

a result of two separate shootings in the central rural town of 

Corozal. The town's mayor, Sergio Torres Torres, states that he

believed the shootings were related to a "quarrel among groups",

but no clear motive has emerged yet. Juan Eddie Rosado Burgos, 

age 28, was shot in front of a business in the Maria del Carmen

neighborhood at 9:11 PM, while a 24 year old man was wounded in

the same incident. Two hours later, another shooting broke out

in front of another business in the Enrique Landrón housing 

project. Jonathan Avilés Adorno, age 25, and Nuvia Vázquez 

Estrada, age 30, died as a result of that shooting, while two

others were injured. Police are investigating.

PR-CUBA FLIGHTS TO BEGIN THIS SUMMER

From Caribbean Business:

Puerto Rico Secretary of State David Bernier said a company involved 

in tourism is preparing to offer some 12 non-stop charter flights from the 

island to Cuba this summer. Bernier said Turismo Tony Pérez will provide 

charter flights to those who fit into the 12 categories established by the 

U.S., which include trips dedicated to culture, education and religion among 

others.

TOURIST DIES WHILE SURFING IN PR

From The Seattle Times:

A 28-year-old tourist from Washington state died while surfing 

along Puerto Rico’s west coast, the U.S. Coast Guard said Wednesday.

Travis Forney lived in North Bend and had flown to Puerto Rico on 

Feb. 15, according to his Facebook page. He worked as a construction 

manager for Huber Architects in Seattle, the company’s president, 

Kevin Huber, told The Associated Press.

HOUSE SPEAKER DEFENDS TAX REFORM

From The San Juan Daily Star:

House Speaker Jaime Perelló hit the airwaves Tuesday to defend the 

proposed Tax Reform and the implementation of a 16 percent value-

added tax (IVA by its Spanish acronym) “because the new tax system 

will bring much needed fi nancial relief to island’s salaried middle 

class.” In a radio interview, Perelló said that citizens’ various 

concerns, specifi cally private schools not being exempt from paying 

the IVA, will be considered during public hearings. Another concern 

is having to pay the IVA for a medical appointment, a cost that is

usually paid by health insurance providers, sometimes in total, while 

other times patients pay a low deductible.

FEDS ANNOUNCE GREEN ENERGY FUNDING

From News Is My Business:

U.S. Agriculture Secretary Tom Vilsack announced Tuesday that rural 

agricultural producers and small business owners across the mainland 

and Puerto Rico can now apply for resources to purchase and install 

renewable energy systems or make energy efficiency improvements.

These efforts help farmers, ranchers and other small business owners 

save money on their energy bills, reduce the country’s dependence on 

foreign oil, support the clean energy economy, and cut carbon 

pollution. The 2014 Farm Bill makes the resources possible.