Price Hikes Expected with New Import Taxes

HAVANA TIMES — The increase in taxes on imports that went into effect on Monday will mean an increase in prices on the island, according to statements made to the AP news agency by new business operators on the island.

“This idea of raising taxes is ludicrous. I don’t know where this decision came from because it affects everybody,” said Rafael, a 50-year-old business operator who has been importing clothes to Havana. “But the ones who are going to be affected most by this measure are the people, because we’re going to have to raise the prices we charge them,” he added.

According to the report, others had prepared for the blow by stockpiling goods before the tax took effect.

The Cuban government has sought to expand the private sector, but still lacks wholesale businesses from which companies can buy the parts, raw materials and other needs for the products they sell.

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