Havana imposes personal income tax on Mariel Port workers

mariel1HAVANA, May 16  Employees working for Cuba’s Special Development Zone (SDZ) at Mariel port would be charged with a 5-percent personal income tax, the Cuban government announced Thursday.

The decision was published in the Government Gazette, along with other regulations on Mariel, a deep-water port and industrial complex 50 km west of Havana. Employees will be hired through employment agencies set up for different sectors, such as energy, construction, biotechnology and foreign trade. The agencies will retain 20 percent of a worker’s wages for commission. All the wages should be paid in Cuban pesos, including those of foreign companies, traded at the annual exchange rate.
“Hypothetically, out of 1,000 U.S. dollars, 800 dollars would go to the worker, but at a rate of 10 pesos per dollar, he would receive a nominal wage of 8,000 Cuban pesos (618 dollars),” Communist Youth daily Juventud Rebelde explained. Wage taxes were eliminated in Cuba after the victory of the revolution in 1959. However, Cuban leader Raul Castro, who launched an economic renovation program six years ago, has stressed the importance of both public and private sector workers contributing to the national budget. (Xinhua)