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The Cuban regime has expanded its control over forms of production Non-State Enactment of new legal provisions, including the establishment of a National Institute on Non-State Economic Actors and prohibit 125 activities to choose from Private Practice.
The regulation was published on Monday, August 19 Official Gazettewhich includes six decrees, two Council of Ministers decrees and 11 resolutions, providing for: From now on, partners in MSMEs on the island must be Cubans with valid residency.a status introduced as part of the new approval Immigration Lawrefers to nationals who spend most of the year in the country. However, according to the regulations, Foreigners with permanent residency on the island will be allowed to exercise this function.
The regulation will take effect on September 19 and includes Consider it a crime for non-state-owned enterprises not to use digital payment channels The authorities themselves said the rules were implemented in August 2023 as part of the so-called banking system, but many non-state-owned enterprises resisted this.
Pursuant to Council of Ministers Decree No. 108/2024, National Institute of Non-state Economic Actors officially established“Responsible for guiding and managing national policies on the development and operation of private small, medium and micro enterprises, non-agricultural cooperatives and individual industrial and commercial households.”
The new institute will be a state entity, directly under the control of the Council of Ministers. The film will be directed by former Cuban Vice President Mercedes López Acea.
As Miguel Díaz-Canel and Prime Minister Manuel Marrero pointed out, the regulations state that non-state organizations will become “complementary actors in the economy.” In addition, they state that political, social and mass organizations can also create micro, small and medium-sized enterprises.
Regarding supply and demand prices, the government has intervened by capping the maximum value of six high-demand products. From now on, MSMEs must follow the rules set by the Ministry of Finance and the Ministry of Prices to set rates for their goods and services.
also, It stipulates that companies in the non-state sector “are obliged not to engage in criminal manifestations or illegal activities, especially those that threaten national security.” “Acting as a front or middleman for company ownership” is listed as a crime.
return Establishing “Contribution to Sustainable Urban Development”taxing the income from “sales of goods or provision of services” of small and medium-sized enterprises.
Some preferential measures enjoyed by small, medium and micro enterprises and “self-employed individuals” have also been cancelled, such as exemption from tax in the first year of operation.
also, To open a new business, the parties involved must obtain authorization from the city government.which will depend on “whether they fit into the city’s development strategy, address other needs of the city or respond to economic priorities.”
The regulations, which prohibit private individuals from engaging in 125 activities, including journalism, cultural programming or book publishing, emphasize the importance of establishing employment standards for non-state sector employees that set out written rules of relations, obligations and rights. Small and medium-sized enterprises “must promote the integration of workers into trade unions”, and all trade unions are state-run.
Cuban economist Pedro Monreal He said of the regulatory plan that it “affirms the monopoly of private activities and markets as part of state measures to ‘correct distortions and re-energize the economy.'”
In one Thread in XExperts warn that with regard to prohibited private activities, “almost half (.) are concentrated in two key production sectors (agriculture and industry), This imposes severe constraints on supply capacity and has a direct impact on the material deprivation of citizens.
“About Another third of the bans (six of the nine) were on human capital-intensive activities. This in turn has a decisive effect on its development: Teaching and artistic activities”.
““47.8% of restrictions are concentrated in the commercial sector, an activity that, in the context of the current crisis, becomes the ‘savior’ of many private entities registered under another ‘company name’, but which they cannot deploy effectively,” Monreal added.
“The new restrictions imposed on wholesale trade for MSMEs and non-agricultural cooperatives could remove the ‘lifeline’ of some entities, but could also favour wholesale centralisation by state ‘inserted’ MSMEs and NRAs,” he warned.
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