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Cuban Government Levies Over 600 Million Pesos in Fines for Price Violations

Monday, November 11, 2024 by Isabella Sanchez

Cuban Government Levies Over 600 Million Pesos in Fines for Price Violations
Market in Cuba - Image of © CiberCuba

The Cuban government has imposed fines exceeding 600 million pesos on businesses that failed to adhere to state-mandated pricing for essential goods, from July until now. According to a report by the state-run newspaper Granma, these fines were the result of price verification activities and were enforced under Decree 30/2021, which addresses "personal contraventions, sanctions, measures, and procedures for violations of pricing and tariff policies," and Decree Law 91/2024, which targets "contraventions in self-employment, micro, small, and medium-sized enterprises, and non-agricultural cooperatives."

Crackdown on Non-State Sector Intensifies

This enforcement is part of a broader governmental initiative against the non-state sector, termed by the regime as a "plan to correct distortions and revive the economy." The crackdown intensified following the enactment of Resolution 225/2024 by the Ministry of Finance and Prices on July 8, which capped the retail prices of six essential items: chicken pieces, vegetable oil, sausages, powdered milk, pasta, and powdered detergent, with the stated goal of "regulating" high prices in retail markets.

Lourdes Rodríguez Ruiz, Vice Minister of Finance and Prices, explained that while local governments are responsible for price regulation, municipal and provincial inspection departments, along with the finance and pricing departments, consistently monitor compliance.

State vs. Private Market Pricing

The Granma report highlights discrepancies between prices set by private agricultural markets and those managed by the Cuban state, known as EJT markets. While private markets operate on supply and demand principles based on cost prices, state-run markets determine prices through enterprise decisions.

At a market located at 19th and B in the Plaza de la Revolución municipality, 21 products are regulated by a resolution from Havana's Governor. Other products are subject to supply and demand, although the market administration sets ceilings on prices due to the capital's situation, according to administrator Yulián Sánchez Chacón. In this location, several fines have been issued for price violations and weight manipulation, with 12 individuals penalized.

Stringent Oversight on Private Enterprises

The oversight of private businesses remains stringent and relentless. Between August and September, the regime imposed fines totaling over 348 million pesos on private micro, small, and medium-sized enterprises (MSMEs). From mid-July to September 19, 137,391 fines were issued to private sector businesses in Cuba, following the detection of 127,532 violations during inspections conducted by government officials, as reported by Mildrey Granadillo de la Torre, First Vice Minister of Economy and Planning.

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