La Fortaleza Proposes Temporary Sales Tax Holiday on Prepared Foods in Santurce

The administration of Governor Jenniffer González Colón has proposed a temporary exemption of Puerto Rico’s sales and use tax (IVU) on prepared foods to help ease household expenses amid ongoing energy concerns. The proposed tax holiday, which would suspend the IVU on purchases of prepared foods at restaurants and food establishments during November and December, has not yet been approved and remains contingent on review and validation by the Financial Oversight and Management Board.

Additionally, the administration has outlined plans for a second round of police salary adjustments, representing a $16 million investment and potentially benefiting up to 6,449 officers, subject to eligibility verification. These raises are expected to appear in paychecks issued on Oct. 31 and applied retroactively to Aug. 1, 2026.

The proposed tax holiday is expected to be in effect from November to December, and it has been welcomed by restaurants. The administration has also showcased a series of economic development, energy, and infrastructure initiatives underway across the island, including a $55 million expansion and modernization project by Toyota de Puerto Rico at its Parts and Vehicle Distribution Center in Toa Baja, and an energy development pipeline with various renewable energy and energy-storage projects in different stages of development.

The administration also detailed holiday leave provisions for public employees, including Nov. 20, Nov. 25, and Dec. 24 as administrative leave charged against vacation balances, and Nov. 27 and the period beginning at noon on Dec. 31 without requiring leave credits. Agencies were instructed to coordinate staffing plans to ensure continuity of essential services.

Additionally, Human Resources Administration and Transformation Office Director Facundo M. Di Mauro Vázquez promoted fraud prevention efforts targeting older adults, warning residents about common scams involving fake emergency calls from relatives, fraudulent banking messages, and the use of technology to mimic voices and identities.

The proposed tax holiday and police salary adjustments are part of the administration’s efforts to address economic and social challenges in Santurce and Puerto Rico as a whole.