Supermercados Selectos proposes solutions to boost economic freedom on the Island.
During its annual convention, Supermercados Selectos presented the study “Economic Freedom Actions for a Just and Prosperous Puerto Rico,” conducted by the Institute for Economic Freedom (ILE), which revealed that in Puerto Rico there are more than 50 laws and regulations that limit private investment and hinder the creation of businesses and jobs.
Jorge L. Rodríguez, analyst and president of the ILE, stated that the study identifies more than 50 laws and regulations that hinder investment and business development on the island. In addition, it proposes specific actions in areas that affect both individuals and businesses, including:
- Tax Burden: It is suggested that the Internal Revenue Code be amended to reduce the economic burden on the population and encourage the formalization of the economy.
- Ease of doing business: Bureaucratic barriers are identified that hinder the creation and operation of businesses.
- Inventory Tax: It is recommended that this tax, which collects approximately US$237 million, be eliminated to increase inventories, improve competitiveness, and reduce market prices.
- Price Control and Cargo Inspections: It is proposed to eliminate the Regulation 8837 charge that mandates 100% inspection of cargo containers, generating an expense of $20 million annually.
- Municipal Businesses: It is suggested to simplify processes and reduce obstacles that affect businesses at the municipal level.
The report also addresses government size and spending, raising the need to evaluate the justification for maintaining 132 state agencies and entities in Puerto Rico, while states with similar populations operate with only 37.
For his part, the ILE president emphasized that the study should serve as a “roadmap for the next government, especially for the legislature, with the goal of unlocking the potential of Puerto Ricans.”.
The study was presented at the Selectos Innova forum, an initiative of the chain to promote dialogue on issues that impact various areas of society. Mayreg Rodríguez, executive director of Supermercados Selectos, highlighted the importance of this forum in the company's commitment to the economic development of the country.
“In previous editions of Selectos Innova we have opened the dialogue on topics such as energy costs for the food industry and food safety. This year, and taking into account the impact on the entire business sector and consumers, we commissioned the Institute for Economic Freedom to conduct a study to work on suggestions that will lead us to improve economic freedoms in Puerto Rico,” said Rodríguez.
Proposals of Supermercados Selectos
Based on the report's findings, Mayreg Rodríguez presented a document in which Supermercados Selectos proposes seven actions to improve economic freedoms in Puerto Rico and encourage the development of amendments to laws and regulations that impact merchants and consumers.
Among the actions highlighted are:
- Reduction of the tax burden: Amend the Internal Revenue Code to consider an adjustment in the income tax, incentivizing labor participation and formalization of the economy.
- Elimination of the inventory tax: Propose eliminating this tax and allocating the corresponding funds to the municipalities through the General Fund, which could increase competitiveness and reduce prices for consumers.
- Review of import regulations: Eliminate the Regulation 8837 charge to improve import processes and reduce costs to the consumer.
- Improvements in assistance programs: Propose legislation to improve the requirements of the Supplemental Nutrition Assistance Program and amend Act 63 so that farmers' markets benefit program participants.
“The labor participation rate on the Island has never exceeded 50%, which means we have one of the lowest worldwide. We need a system that encourages the formalization of the economy and maximizes economic freedom for individuals,” Rodríguez stressed.
Supermercados Selectos reaffirmed its commitment to the development and prosperity of Puerto Rico, indicating that the studies and agreements presented will serve to promote new amendments and legislation that will benefit merchants and consumers, improving the economy and boosting the Islands's prosperity.
“This is an effort to generate positive changes that impact Puerto Rican society as a whole. As a Puerto Rican chain, we strive to offer the best service and quality products and prices, and we understand that these actions are necessary to build a more prosperous and efficient Puerto Rico,” concluded the executive director.
Supermercados Selectos is a Puerto Rican chain with more than 35 years of experience in the market, committed to providing quality and service to its customers, as well as to the economic and social development of Puerto Rico.
This article was originally published in Spanish by Notiséis.
