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, Bloomberg News reported today. The Senate passed (14-12) the measure yesterday 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 Garcia 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.
