The Puerto Rican House of Representatives on 30 April 2015 voted against the implementation of the VAT regime proposed by the government to help resolve Puerto Rico's budget issues, including mounting debt and difficulty raising needed funds. The initial proposed VAT rate was 16%, but later reduced to a 13% rate plus a 1% municipal tax. The VAT regime would have replaced Puerto Rico's 7% sales and use tax. In response to the rejected measure, the government has announced government spending cuts, and will develop a new revenue proposal.