A santiaguera entrepreneur lashed out against the Cuban regime this Wednesday, condemning its double standards in harassing MSMEs and self-employed workers for price inflation, while the government reaps 13.5% from every product sold by MSMEs and TCP (self-employed workers).
Lena Pérez Font, who owns a restaurant in Santiago de Cuba, took to Facebook to explain how the Cuban regime profits from her business's sales. According to Pérez, the regime mandates that TCPs and MSMEs include a "10% increase per sale + 1% local development + 1.5% for each payment to the fiscal account + 1% ACDAM" in their cost sheets.
Pérez concluded, "Each product not only includes the entrepreneur's desired profit but also what the country wants to gain, which is nothing less than 13.5% per item sold." She added, "And we are not even talking about annual or quarterly taxes yet."
The young entrepreneur emphasized that the final price includes not only workers' wages and business profits but also all these levies. She illustrated her point with an example, explaining how the Cuban regime is the main cause of the high prices of some products sold in her restaurant. "If beer is acquired (in the case of service businesses) at 160 pesos × 13.5% = 181.6 pesos (without earning a single peso), just for taxes," she denounced.
The new control measures imposed by the Cuban regime on the private sector will begin to be implemented in 16 out of the country's 168 municipalities, chosen by the government. In a statement from the Ministry of Finance and Prices, it was announced that the trial period would last 180 days, after which other regions would be included.
As of last July, the Cuban government had shut down a total of 15 MSMEs, alleging accounting irregularities. Judith Navarro Ricardo, a legal specialist with the National Office of Tax Administration (ONAT), revealed that they had detected mismanagement in accounting practices, such as recording equipment purchases as direct expenses instead of inventory, which artificially reduces the company's profit.
Understanding the Economic Challenges Faced by Cuban Entrepreneurs
In light of the recent criticisms by Lena Pérez Font, here are some frequently asked questions about the economic challenges faced by entrepreneurs in Cuba.
What percentage does the Cuban government take from each sale made by MSMEs and TCPs?
The Cuban government takes 13.5% from each item sold by MSMEs and TCPs.
What are the components of the 13.5% levy?
The 13.5% levy includes a 10% increase per sale, 1% for local development, 1.5% for each payment to the fiscal account, and 1% for ACDAM.
Which municipalities are affected by the new control measures?
The new control measures will be implemented in 16 municipalities, selected by the Cuban government, out of the country's 168 municipalities.
Why did the Cuban government shut down 15 MSMEs?
The Cuban government shut down 15 MSMEs due to alleged accounting irregularities, including mismanagement in recording equipment purchases as direct expenses instead of inventory.