Tax Policy
Puerto Rico’s Act 22 tax break draws backlash as critics link it to displacement and rising housing costs
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Puerto Rico’s investor tax incentive known as Act 22—later folded into the island’s broader Act 60 incentives code—has become a flashpoint in debates over housing affordability and displacement, as critics argue the program helps wealthy newcomers reduce their U.S. tax bills while intensifying local pressures on rents and real estate.
South Africa’s carbon tax has remained intact in the 2026 budget, despite proposals from Energy Minister Kgosientsho Ramokgopa to suspend it amid pressure from fossil fuel lobbies. The tax increased from R236 to R308 per tonne of carbon dioxide equivalent as of 1 January 2026, continuing its role in climate mitigation efforts. Debates persist on its economic impacts and alignment with job creation needs.
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Prime Minister Sanae Takaichi is expected to announce in her policy speech on Friday that the government will present a public-private investment road map for its growth strategy in March. The road map will promote bold investment and support international expansion by businesses in 17 strategic fields. The government also plans to compile ideas on a two-year consumption tax reduction limited to food items before summer and expedite related tax reform bills.
Japan's ruling coalition has secured its first multiparty agreement by accepting the opposition's demand to abolish the provisional gasoline tax rate by the end of the year. This breakthrough marks an initial win for Prime Minister Sanae Takaichi's minority administration in both houses of the Diet. Takaichi has prioritized tackling high prices in her cabinet.
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Ethiopia's federal government is undertaking a landmark shift in its investment incentive regime. It is moving away from broad-based tax holidays to performance-based incentives.