Customs tax reduced by 50% to encourage food production

HAVANA, Feb. 19th. The Cuban state has approved new benefits and tax incentives to help revive key sectors of the economy such as agriculture and industry, which began to be implemented at the beginning of this year.

This was known with the recent publication of the Official Gazette of several resolutions of the Ministry of Finance and Prices (MFP), through the management and control of the 2024 State Budget Law.

One of the most striking is the bonus on payment of customs tax on imports of raw materials, inputs and intermediate goods, which are destined for productive processes, mainly those focused on agricultural and food production.

The tax rate was reduced by 50%, although it is not the only measure of the MFP in its “effort to promote the promotion and development of primary sectors such as that, in which the country spends millions of dollars annually on the acquisition of food in the abroad,” according to a report from the state-run Cuban News Agency.

Among the rest of the approved regulations, there is also a 2% reduction in the tax rate for paying personal income tax. This would be in the case of individual agricultural producers, while the general tax is 5%.

According to the aforementioned media, this regulation expresses “the differentiated treatment and priority given to the strategic sector, to stimulate the production of food for the population.”

Likewise, Resolution 308/2023 of the MFP itself is in force, which consists of the application of the tax for the idleness of agricultural and forest lands in the provinces and municipalities of the country.

Regarding it, the head of the aforementioned ministry, Vladimir Regueiro Ale, explained that it is not a tax aimed at collection, but rather at “impacting that landowner make efficient use of this resource, to improve the diet of the people.” town”.

Finally, mention was made of the boost that the Cuban state wants to give to the Rural Affairs Program, to improve the living conditions of those areas of the island.

The media insists that in these areas “there is a fundamental component of our cultural identity and the primary sector of the economy that should contribute the most to the GDP is based.”

That is why the government intends to contribute to stopping the depopulation process that has existed in them since the middle of the last century.