Commonwealth of Puerto Rico Ups
Taxes on High-Priced Cars, Liquor
SAN JUAN, Puerto Rico, (IP)—‘
Gov. Luis Munoz Marin signed
Friday a bill increasing excise
taxes on new high priced cars and
also raising the cost of license
plates for new cars.
In a written statement, Munoz
said the new legislation eliminates
taxes on a number of items nec
essary for the housewife, busi
nessman and farmer. For the gov
ernment to continue its program
to raise the standard of living, he
said, it is necessary to find new
sources of income to replace the
taxes wiped out.
“That is why taxes are in
creased on some items like high
priced automobiles, cement, beer,
alcoholic beverages and others,”
Munoz said.
In raising the cost of license
plates for new cars, the governor
said, “the legislature apparently
is trying to do away with the
citizens’ habit of exchanging their
cars for a new model every year.”
He said he would recommend that
►
the legislature reduce consider
ably the cost of plates for the sec
ond year of a car’s use.
Munoz added:
“High priced cars and exchang
ing them frequently is a luxury
for Puerto Rico. It is possible that
this measure might bring more
savings and more investment of
local capital in Puerto Rico’s in
dustrial and agricultural develop
ment.”
Backers of the new law' noted
in debate that thdte are 61,000
family cars on the island—one for
every eight families. They said
that with the tendency to ex
change models every years, about
$40 million leaves Puerto Rico
for the purchase of automobiles,
which economists say the Island
can ill afford.
San Juan newspapers assailed
the measure. El Mundo charged it
“has all the characteristics of reg
imentation, with danger of liberty
for the individual.”
Munoz denied this. He said
the fact that taxes are increased
on luxury items, including high
priced automobiles, “definitely is
no attempt at regimentation, and
therefore I consider justified the
increase. ...”
He called attention to the fact
that the new law does not affect
trucks or commercial vehicles or
vehicles for public transportation,
but only family cars in the high
price range. He added people can
still buy new cars in the low
price bracket where taxes are un
changed.
A car selling for $3,500 has
been taxed $400. Under the new
law, the car will be taxed $480.
The tax on a $4,500 car, $750 un
der the old rate, will jump to j
$1,200.
The increase in the cost of li
cense plates covers all new cars,
no matter what the price. Plates
now costing $30 will rise to $144
for the first year of the car’s use,
$117 for the second, $36 the third,
$27 the fourth and $9 for the fifth.
The tax on beer was 44 cents a
gallon, or about 3.8 cents a bottle.
This goes up to 60 cents a gallon,
or about 6 cents a bottle.
The whiskey and brandy tax of
$6 a gallon rises to $9.
The levy on cosmetics and other
toilet articles is upped from 15 to
20 percent.
Among the taxes eliminated
were: 3 cents a gallon on kero
sene, 20 percent on electric irons,
refrigerators, stoves, sewing ma
chines, typewriters, electric milk
ing machines, construction equip
ment, oils and lubricants. The 20
percent tax also was taken off
Jeeps, small trucks and motor
cycles.
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