CubaHeadlines

Twelve Small Businesses Shut Down for Price Violations in Las Tunas

Tuesday, July 16, 2024 by Elizabeth Alvarado

Twelve Small Businesses Shut Down for Price Violations in Las Tunas
SMEs in Cuba - Image by © Periódico 26

The government of Las Tunas has shut down 12 micro, small, and medium-sized enterprises (MSMEs) for violating the resolution that temporarily regulates the maximum retail prices of six high-demand basic products.

The official Periódico 26 reported that "in those 12 establishments, forced sales of the stocked items that were not being marketed were carried out." Additionally, it was noted that the most common violations detected included setting prices above the allowed limits, not using electronic payment channels, and hiding products subject to control. As a result, a total of 52 fines were imposed.

The official news portal indicated that, through citizen complaints, it was confirmed that after the resolution was published in the Official Gazette of Cuba, some products, particularly chicken, suddenly disappeared from the market.

"In other locations, it was reported, their prices exceeded the maximum indicated in the legal regulations," emphasized Periódico 26.

However, the official site acknowledged that some individual entrepreneurs have reached out to the editorial team to express their concerns, as the indicated pricing did not allow them to cover the cost at which they had previously acquired the chicken, an issue not addressed by the regime that imposed the measure without considering factors like investment.

Lastly, the regime used the newspaper as a spokesperson to disseminate various communication channels for reporting violations of the price regulation resolution and invited citizens to use them, calling it "popular control," a longstanding method of encouraging public denunciations.

Last Thursday, the regime shut down 15 MSMEs for accounting irregularities. Judith Navarro Ricardo, a legal specialist from the National Office of Tax Administration (ONAT), revealed that poor accounting practices were detected, such as purchases of equipment being recorded as direct expenses instead of inventory, which artificially reduces the company's profit.

Also, in recent days, fines have begun to be imposed on non-state economic entities that violated the price caps imposed on six essential items.

However, the Council of Ministers recently approved six decree laws, which they will present to the State Council, updating the legal provisions for MSMEs, self-employed workers, and private sector companies in Cuba.

"Contrary to what the enemies of the Revolution say, this is not a crusade against MSMEs or non-state management forms. These are policies approved in the Communist Party Congress," said Manuel Marrero, Cuba's Prime Minister, regarding the new decrees.

Key Questions on MSMEs Shutdown in Las Tunas

Given the recent shutdown of MSMEs in Las Tunas due to price violations, several questions arise about the measures and their implications. Here are some frequently asked questions and their answers:

Why were the MSMEs in Las Tunas shut down?

The MSMEs were shut down for violating a resolution that temporarily regulates the maximum retail prices of six high-demand basic products. Common violations included setting prices above the allowed limits and not using electronic payment channels.

What happened to the products in these MSMEs?

In the affected establishments, forced sales of the stocked items that were not being marketed were carried out. This included essential products that were either hidden or overpriced.

How did citizen complaints play a role?

Citizen complaints were crucial in identifying the violations. These complaints confirmed that some products, especially chicken, disappeared from the market or were sold at prices exceeding the legal limits.

What are the recent legal updates for MSMEs in Cuba?

The Council of Ministers recently approved six decree laws updating the legal provisions for MSMEs, self-employed workers, and private sector companies in Cuba, which will be presented to the State Council.

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