Cuba Not to Fully Apply New Tax Law

HAVANA TIMES — In accordance with the decision of the Cuban legislature in its recently held last session, not all taxes included in the new tax law will be applied when that legislation comes into effect on January 1, 2013, reported the official Cubadebate website.

Law 113 establishes the gradual and flexible implementation of taxes based on the annual parliamentary approval of the national budget. Therefore, in the next twelve months, taxes will not be applied on the following nine areas:

–    Sales, services and products sold in CUCs, as well as sales of wholesale goods
–    Ownership and the possession of agricultural land
–    Ownership of housing and vacant lots
–    Idle agricultural and forest land
–    The use or exploitation of beach property
–    The approved dumping of waste in watersheds
–    The right to use water resources
–    Personal income related to wages

However, starting in January, taxes will be applied on the following:
–    Personal Income
–    Utilities
–    Sales
–    Services
–    Inland transportation
–    Ownership of vessels
–    Transfer of property and inheritance
–    Documents
–    The use of workers
–    The use and exploitation of forest resources and wildlife
–    The use and exploitation of bays
–    Customs.

Other taxes and fees that will also take effect consist of:

–    Provincial contributions to local development
–    Social security contributions
–    Special contributions to social security
–    Toll fees
–    Fees for airport service
–    Filing fees for broadcasting advertisements and commercial advertising

According to the news note, taxes paid by individuals and legal entities next year will represent 62 percent of gross revenues of the national budget.

4 thoughts on “Cuba Not to Fully Apply New Tax Law

  • Anybody got the link to the original Cubadebate article? Can’t find it.

  • These taxes show that the purpose to the economic reforms is to direct a flow of hard currency into the coffers of the State and the pockets of the politically connected elite. Economic growth and liberalization are not on the menu.

  • Marxist utopia heralds the “money-less” society. Yet, 53 years after Fidel’s triumphant revolution, 62% of gross revenues to the national budget comes from taxes. Viva la revolucion!

Comments are closed.