Puerto Rico unveils tax cuts

The governor of Puerto Rico has announced plans to cut income and business taxes by more than US$1 billion annually over the next seven years.



The cuts will be done in an attempt to jump-start the US territory's economy, which has been in recession for four years.



Governor Luis Fortuno called the plan the biggest tax relief package in Puerto Rico's history.



He says ordinary taxpayers would see a 50 per cent reduction in their taxes when the reform is fully implemented.



Businesses would receive an average 30 per cent cut.



The governor’s address to parliament followed a weekend vote by lawmakers to impose a six-year tax hike on offshore manufacturing firms operating in Puerto Rico.