The United Retailers Center (CUD) called for a substantial, immediate reduction in Puerto Rico's excise tax on crude oil and petroleum products, known as the "crudita," followed by a fiscally responsible plan to eliminate it entirely. CUD President Alan Taveras Sepúlveda presented the group's position Wednesday to the Puerto Rico Senate's Commission on Finance, Budget and PROMESA during discussions on Senate Resolution 461.
Taveras said the tax hurts small and midsize businesses beyond direct fuel costs, since petroleum expenses run through the entire supply chain — transportation, deliveries, distribution and supplier services. He argued the tax's cumulative impact on business activity and cost of living should be evaluated, noting Puerto Rico's particular vulnerability due to its dependence on goods shipped from outside the island.
The CUD proposed a five-part approach: an initial significant reduction, a timetable for progressive elimination, periodic reviews, transparent measurement of effects, and identification of alternative revenue sources that would not shift the burden back onto small businesses and consumers.