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PUERTO Rico Governor Alejandro Garcia Padilla pledged on Thursday to negotiate with legislators after they blocked an overhaul of Puerto Rico’s tax system.
But he warned he would act independently if necessary to rectify the US territory’s financial problems.
“Puerto Rico is facing the biggest economic crisis in its history,” said Mr Garcia. “I will not stand by idly. The island can no longer bear the uncertainty of inaction. In spite of some of you, this island will rise.”
He spoke just hours after legislators rejected a call for a 16 per cent value-added tax and then voted 28-22 against any alternative way to raise revenue, including a 13 per cent goods-and-services tax.
Mr Garcia said he would reduce government costs and restructure the Treasury to help cut down rampant tax evasion.
The island’s Government Development Bank recently warned the administration could shut down within three months.
