Cuban Finance and Prices Minister Vladimir Regueiro Ale has issued a stern warning to owners of micro, small, and medium-sized enterprises (mipymes) that hiding merchandise and not selling it to the public constitutes a "serious crime." The official appeared on Cuban television to explain the initial control measures implemented by the regime following the recent enactment of Resolution 225, which caps the prices of six essential products in the country.
Regueiro emphasized that hiding merchandise and obstructing commerce could be considered serious crimes or infractions. "We are issuing warnings, and where we have identified such cases, we have summoned municipal governments and the economic actors involved," he stated. Mipymes owners are being called to government offices to receive guidance on the measures they need to take in each situation.
"In many instances, we have had to order the forced sale of merchandise. By July 13, we had mandated 151 forced sale actions on products," he said. He also noted that the majority of violations occur in the sale of chicken and cooking oil.
Despite the "guidelines" provided by the state, the public continues to report shortages of basic products like chicken and powdered milk since the new measures were implemented for private businesses. Regueiro also addressed profit regulation, indicating that a maximum profit margin of 30% has been established.
"The state has made a significant effort to reduce costs by eliminating tariff payments. This should motivate all of us to review how profits are distributed, as the ultimate beneficiary is the public," the official noted.
Cuban Prime Minister Manuel Marrero, during an extraordinary Council of Ministers meeting last week, discussed the updated legal provisions for mipymes, self-employed workers, and private sector companies in Cuba. Marrero stated that the government's new policies "are not a crusade against mipymes." He assured that they are essential for the economy and were approved at the Communist Party Congress.
He acknowledged that the initial regulations had legal gaps that led to distortions and emphasized that the private sector must understand its role in the economy because "the Constitution of the Republic clearly states that the primary actor is the socialist state enterprise."
This past weekend, the government ordered 11,891 inspections of the private sector, euphemistically calling them "actions to address violations of capped prices." The detection rate for violations was 41.7%, with 4,954 cases identified. A total of 4,332 fines were imposed, amounting to more than 13 million pesos.
Understanding the Impact of New Regulations on Cuban Private Sector
In light of the recent regulatory changes affecting micro, small, and medium-sized enterprises in Cuba, several questions have arisen. Here, we address some of the most pressing inquiries related to the new measures and their implications.
What are the main products affected by the new price caps?
The main products affected by the new price caps include chicken, cooking oil, and other essential goods as outlined in Resolution 225.
What constitutes a serious crime under the new regulations?
Hiding merchandise and obstructing commerce are considered serious crimes under the new regulations set forth by the Cuban government.
How has the public reacted to the new measures?
Despite the new measures, the public continues to report shortages of basic products like chicken and powdered milk, indicating ongoing challenges in the supply chain.
What is the maximum profit margin allowed under the new regulations?
The new regulations establish a maximum profit margin of 30%, aiming to ensure fair pricing for essential goods.