In Puerto Rico, Fiscal Oversight Board (JSF) executive director Robert F. Mujica questioned on Tuesday, October 27, 2026, Governor Jenniffer González’s proposal to exempt purchases of prepared foods at restaurants from the sales and use tax (IVU) during November and December. The proposal aims to ease the impact of high electricity costs, which will remain in place at least until the end of the year.
"The problem is not the figure of this proposal; the problem is the practice," Mujica wrote.
In a letter to the governor and the legislative leaders, Mujica argued the two-month IVU suspension addresses a symptom but not the cause: the lack of cheaper electricity generation. He noted the proposal was not raised at their meeting on October 21, 2026, two days before its announcement, and that it is the second tax-relief measure announced this calendar year outside the budgetary process before determining its cost or analyzing its effect on the certified budget and the five-year financial plan.
"The problem is not the figure of this proposal; the problem is the practice," Mujica wrote. He said power prices will fall when fuel costs drop or Puerto Rico adds cheaper generation, citing renewable projects, converting plants to natural gas, and new gas-fired capacity, and noted restaurants will face the same prices when the suspension expires on December 31, 2026.
He urged a "productive dialogue" and said Puerto Rico needs enacted law. González said the exemption would take effect as an administrative determination by the Treasury secretary, and that other possible credits remain under discussion with the Board next week. The residential electricity rate for October to December stands at 33.86 cents per kilowatt-hour, the highest since 2020; the increase of more than five cents per kWh took effect in early October, and the proposal will be submitted to the Board about a week before the proposed exemption period begins.