Puerto Rico July tax revenue beats forecast on excise tax

Puerto Rico's tax revenues beat the government's forecast in July due to higher-than-expected collections of foreign corporation tax, but receipts from other taxes, such as personal income and corporation, missed targets.

Revenue rose 26 percent from the same period last year to $624 million in July, exceeding the government's forecast for the first month of fiscal 2015 by $37 million, the government said in a release dated Aug. 7.

Foreign corporation excise tax collection reached $283.3 million during the month, an increase of $148.4 million over July 2013 and $75.3 million over target. The growth was due to an increase in the tax to 4 percent from 2.75 percent.

"Preliminary revenues for July 2014 are a good sign for the beginning of fiscal year 2015. Since January 2013, we have been on a steady path towards recovery and fiscal accountability. This month's results strengthen the foundation for Puerto Rico's future economic growth," Treasury Secretary Melba Acosta Febo said in a statement.

Despite beating the outlook in overall collection estimates, Puerto Rico missed forecasts in important taxes, according to the release dated Aug. 7. Individual income tax was $15.1 million below forecast at $142.1 million, and corporate tax was $3.7 million below forecast at $99.3 million.

Sales and use tax, which is used to support COFINA, or sales tax revenue bonds, rose 6 percent to $113.7 million. The Treasury did not provide an estimate for sales tax revenues for July.

(Reporting by Edward Krudy in New York; Editing by Chizu Nomiyama and Jeffrey Benkoe)

Puerto Rico July tax revenue beats forecast on excise tax