Recently, sources from the Ministry of Finance and Prices (MFP) have offered details about the increase in tariffs on certain products imported to Cuba.
As reported CubahoraAlthough tariffs generally apply to all goods exported and imported, experts have clarified that Cuba only resorts to imports.
As is known, the Ministry of Finance and Prices (MFP) of Cuba increased the tariff rates to the import of tobacco, cigars, rum and other alcoholic beverages.
This measure, adopted in conjunction with the Ministry of Foreign Trade and Foreign Investment (MINCEX), aims to protect national production in these areas and boost the economy, the authorities assured.
The text of the aforementioned state media states that tariffs have two fundamental functions: to protect national production against imported goods and to collect income that goes directly to the State Budget. These income are distributed to social and political programs to benefit society, in addition to helping to reduce prices.
INCREASE IN TARIFFS IN CUBA
According to the information offered, to apply a tariff, bilateral agreements signed with various countries and multilateral agreements adopted with the World Trade Organization must be taken into account.
According to the MFP Revenue Director, Cuba applies a low tariff rate. As a general rule, 5% applies, and some products have a tariff or tax rate of 2.5%. The 30% increase in two product nomenclatures such as cigarettes and tobacco, and alcoholic beverages and rums, has several reasons, he said.
He alleged that these products are harmful to health, create addictions and there is an international commitment to increase the tax burden to minimize and reduce consumption. Furthermore, “another objective is to protect the national industry” because these items are produced in Cuba and, due to their quality, they can meet the needs of the market.
The director stressed that in Cuba there are productive capacities, many of them modern, that are not being fully exploited.
Therefore, measures must be adopted to encourage its optimal use, and one of them may be through tariffs. He affirmed that the people are the main beneficiaries, since the income raised goes to the State Budget, and with it is redistributed to acquire vital goods and services, implement or support economic and social programs.
