IVU, Law 154 boost Treasury collections in May
General fund collections reached $625 million in May, representing an increase of $88 million, or 16.4 percent, when compared to the same month in 2010, the Treasury Department said Monday.
Agency chief Jesús Méndez said it is the fourth consecutive month when collections exceed the prior year’s total for the same period.
The main sources of income that contributed to the growth were the temporary corporate tax under Law 154, which represented $130.4 million and corporate income taxes, which increased by $20 million. Meanwhile, individual income tax was reduced by $44 million, or 23.6 percent, in May due to the relief provided through the recently enacted Tax Reform.
“This is exactly the desired effect, that individuals have more money in their pocket and that revenue comes from alternative sources,” said Méndez.
In terms of consumer taxes, in May, collections related to the Sales and Use Tax (or IVU, as it is known by its initials in Spanish), increased by 4.3 percent to $89.2 million, Méndez said.
That revenue has continued an upward trend, reaching $97.3 million in June, representing a 3.2 percent increase versus June 2010.
Tax revenue on alcoholic beverages and cigarettes increased by $2.9 million and $ 5.2 million, respectively, in May.