By Jay Heflin - 10/27/10 08:01 PM EDT
"The imposition of this tax could jeopardize the jobs of over 100,000 people and could damage business relationships that have taken years to develop between the affected companies and the government of Puerto Rico," Engler said in prepared remarks. "Even more concerning is that this law was passed in a period of 48 hours with no public hearings."
Engler claims the tax will hit U.S.-based manufacturers that have invested in Puerto Rico, which represents about 80 percent of all manufacturing on the island and accounts for nearly 26 percent of its gross domestic product.
"We are alarmed by the actions taken by the Puerto Rican government to impose a new excise tax on multinational manufacturers," Engler said, adding. "The Puerto Rican government's decision to impose this discriminatory tax could profoundly impact companies as they consider both existing and future operations."
Pharmaceutical Research and Manufacturers of America president John Castellani echoed a similar sentiment, saying biopharmaceutical companies last year invested more than $65.3 billion in research and development and helped to create jobs in Puerto Rico.
"This [tax] could significantly reduce the ability of PhRMA's members to operate in the Commonwealth and to continue to make significant investments in researching and developing innovative new medicines for patients," he said in prepared remarks.