Tuesday, July 24, 2012

Cuba approves new tax law

Cuba approves new tax law
Tuesday, July 24th 2012, 07:35 AM

Havana, July 24 — The Cuban parliament has approved a new tax law
designed to cope with the country's growing private sector.

The Tax System Act, which stipulates 25 categories of taxes, will come
into force in January 2013 and put an end to Cuba's current tax regime
established in 1994, reported Xinhua.

Unlike its predecessor, the new tax law include articles on
private-sector profits and employment, ownership of agricultural lands,
land transactions, as well as personal income.

However, Cuban Finance Minister Lina Pedraza said the tax on personal
incomes and housing ownership would not be implemented soon since
"conditions are not yet mature".

Pedraza said the new tax law, the result of extensive consultations
lasting for seven months among lawmakers, academics, and officials, was
"more flexible" and would be applied "gradually" so as to ensure the
national income and promote sectors conducive to socio-economic
development of the country.

Cuba's private sector has witnessed rapid growth since the authorities
loosened control in a bid to revitalize the country's stagnant economy.

Latest figures showed Cuba's private-sector workforce grew to 390,000 at
the end of June, up nearly 3,000 from the previous month.



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