CubaHeadlines

Las Tunas Enforces Rigorous Time Restrictions on Private Entrepreneurs and SMEs

Sunday, January 12, 2025 by Sophia Martinez

Las Tunas Enforces Rigorous Time Restrictions on Private Entrepreneurs and SMEs
Private cafeteria in Cuba (Reference Image) - Image by © CiberCuba

This past Sunday, the Administrative Council of Las Tunas municipality unveiled a series of new regulations that directly impact self-employed workers and small to medium-sized enterprises (SMEs) within the area. These measures, detailed on the Facebook page of Periódico 26 de Las Tunas, aim to control operating hours and service fees across various parts of the municipality.

Among the new rules is a fixed maximum fare of 10.00 CUP per passenger for electric transportation services operated by private entrepreneurs and SMEs. Additionally, the council has set strict operating hours for commercial activities, which vary based on the location of the businesses. Establishments situated on Francisco Varona Street (between Lucas Ortiz and Frank País) and Francisco Vega Street (between Joaquín Agüero and Lucas Ortiz), where the city's boulevards are located, are now limited to operating from 7:00 a.m. to 11:00 p.m., seven days a week. The council claims this initiative is intended to ensure order in these bustling areas.

Continuous operations will be allowed in concentrated areas such as transportation hubs and terminals. Included in these areas are the Jobabo exit, Manatí exit, Holguín exit (Pediatric Hospital), La Caldosa, Puerto Padre exit (Los Pinos), El Tanque, and Guevara Hospital. However, after 11:00 p.m., music that might disturb public peace is prohibited.

All other commercial establishments not situated in these designated zones must also adhere to the operating hours of 7:00 a.m. to 11:00 p.m. These regulations have sparked concern among private workers, who feel that the limitations on hours and pricing could hinder their competitiveness and ability to meet customer demands.

In the comment section, Arnoldo Alemán Cordero criticized the new regulations, calling the idea of regulating private sector service hours "laughable." Alemán argued that these measures will not only reduce business income but also lower tax revenue from profits, sales, and personal income. He also predicted job losses, particularly affecting those who rely on nighttime activities. Furthermore, he noted that the labor force utilization tax will suffer as a result of this decision.

Regarding the uniform ten-peso fare for electric transport, Alemán acknowledged its potential benefit to customers but criticized the authorities for overlooking the fact that electric vehicles were purchased in U.S. dollars, without any subsidies or tax breaks from the government. He believes this measure is doomed to fail as it neglects the needs of the owners and the actual costs of operation.

Dori Hidalgo Hechavarría commented that the ten-peso transport fee does not account for the real maintenance costs of these vehicles. She argued that when it comes time to replace batteries or tires, that amount falls short, suggesting a rate of 20 or 30 pesos would better cover the operational expenses of the owners.

In recent months, various restrictive measures imposed by the Cuban government have severely impacted the private sector, stunting its growth and significantly hampering its operations. An audio recording from a meeting between Cuban private entrepreneurs and representatives of the communist regime has surfaced, revealing the mounting frustration within the private sector regarding the latest government-imposed restrictions.

The controversy centers around Resolution 56/2024 from the Ministry of Domestic Trade, which severely restricts wholesale trade, threatening the survival of Micro, Small, and Medium Enterprises (SMEs), non-agricultural cooperatives (CNA), and self-employed workers (TCP). In the widely circulated audio, private entrepreneurs voiced their dissatisfaction with the government's actions. One participant, visibly upset, stated, “As a government, you have an obligation to address your problems, and we have ours. But you cannot trample on us like this.”

The new regulations force SMEs and cooperatives to conduct business exclusively through state-controlled enterprises or government-run commercial entities. Additionally, it sets strict deadlines of 90 days to update licenses and 120 days to liquidate wholesale inventories. Non-compliance carries severe penalties, including fines, seizures, and the cancellation of operating licenses.

FAQs on Las Tunas' New Regulations for Private Sector

What are the new operating hours for businesses in Las Tunas?

Businesses in designated boulevard areas must operate from 7:00 a.m. to 11:00 p.m., while those outside these areas also follow the same hours.

How do the new regulations affect electric transportation fares?

A maximum fare of 10.00 CUP per passenger is set for electric transportation, which has been criticized for not covering the real costs of vehicle maintenance.

What are the consequences of not complying with the new regulations?

Non-compliance can lead to fines, asset seizures, and the revocation of operating licenses.

© CubaHeadlines 2025