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Puerto Rico Governor, Lawmakers Agree on Revenue Proposal

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Puerto Rico Governor Alejandro Garcia Padilla and lawmakers reached an agreement on a proposal to raise the island’s sales tax, a move that may help it sell debt and ease a cash crunch.

The plan would boost the levy to 11.5 percent from 7 percent for nine months, in a transition to implementing a value-added tax, the governor and members of his Popular Democratic Party told reporters late Thursday in San Juan. The increase is expected to bring in $1.2 billion of revenue. Lawmakers also agreed to recommend $500 million in spending cuts as part of a $9.8 billion budget for fiscal 2016.