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AdvaMed Opposes Puerto Rico Medical Device Tax Increase
Date:2/1/2013

WASHINGTON, Feb. 1, 2013 /PRNewswire-USNewswire/ -- The following statement was released today by Stephen J. Ubl , president and CEO of the Advanced Medical Technology Association (AdvaMed), in response to a proposed significant tax increase on medical technology manufacturers operating in Puerto Rico:

"AdvaMed strongly opposes plans announced today to significantly increase a tax on medical device manufacturers who operate in Puerto Rico. 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 today 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.

"We urge the Governor to reconsider this damaging tax increase and to work collaboratively to improve the overall business climate in Puerto Rico."

AdvaMed member companies produce the medical devices, diagnostic products and health information systems that are transforming health care through earlier disease detection, less invasive procedures and more effective treatments. AdvaMed members range from the largest to the smallest medical technology innovators and companies. For more information, visit www.advamed.org.


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