The Cuban Ministry of Transportation has announced a postponement in the implementation of recent updates to the country's vehicle sales policy. This delay is attributed to the necessity of aligning the regulations with the involved entities. Eduardo Rodríguez Dávila, the Minister of Transportation, shared on Facebook that although the new measures were expected to be enforced by now, the process is taking longer than initially anticipated.
Rodríguez Dávila acknowledged the growing concern among the populace regarding the new rules. "We understand everyone's worries," he stated, while assuring that the final details are currently being reconciled and will be communicated once the adjustments are finalized.
The updated policy encompasses elements such as the transfer of motor vehicle ownership and the sale of vehicles in freely convertible currency. These regulations were sanctioned under Decree 83/2023, which aims to enhance vehicle accessibility and generate revenue for the recovery of Cuba's public transportation system.
High Vehicle Costs Spark Public Outcry
Last September, Rodríguez shared infographics on social media detailing how the prices of imported vehicles are formulated, a subject that has sparked criticism due to their exorbitant costs. According to these infographics, the final price of a vehicle is calculated by adding the supplier's base cost, import expenses (6%), a commercial margin (20%), and special taxes that can reach up to 35% depending on the vehicle's category.
For instance, a standard vehicle's final price can reach 15,900 USD or euros, while a high-end car may cost 17,172 USD or euros. Such prices are deemed unaffordable by many Cuban professionals, who have expressed their discontent on social media.
Regulatory Changes and Economic Impact
Back in July, the Cuban government allowed the importation of vehicles by Cubans serving on missions abroad, such as medical brigades and diplomatic staff. Additionally, tariff exemptions were introduced for electric cars, though the lack of infrastructure for these vehicles has raised questions about their practicality.
The regime claims that the income generated from tariffs and taxes will be allocated to developing the public transportation sector, which has been severely affected by the country's economic crisis. However, the steep vehicle prices and a shortage of affordable alternatives have fueled ongoing debates about the announced policies.