Saturday, February 9, 2013

Advanced Medical Technology Association opposes tax increase on medical technology manufacturers

The Advanced Medical Technology Association (AdvaMed) issued a statement opposing the proposed tax increase on medical technology manufacturers operating in Puerto Rico.

"AdvaMed strongly opposes plans announced to significantly increase a tax on medical device manufacturers who operate in Puerto Rico," said Stephen J. Ubl , president and CEO. "The tax when first imposed in 2010 was slated to decrease from four percent in 2011 to one percent in 2016. The Puerto Rico Treasury announced that it will seek instead to raise the tax back to four percent and keep it at that level through 2017. Raising taxes on a key manufacturing partner will not improve Puerto Rico's economic recovery. Device manufacturers are already struggling to address a challenging international business climate, significant cuts to Medicare programs and, of course, the U.S. medical device tax which went to in effect in January. This additional burden will force companies to make tough choices about cuts in R&D, employment and possible significant delays in capital improvements."

Ubl urged Governor García Padilla to reconsider whathe termed a "damaging tax increase" and to "work collaboratively to improve the overall business climate in Puerto Rico."


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