{"id":185572,"date":"2018-07-15T00:00:00","date_gmt":"2018-07-15T04:00:00","guid":{"rendered":"https:\/\/oncubanews.com\/en\/new-regulations-for-private-sector-more-nos-than-yess-2\/"},"modified":"2018-10-02T14:55:41","modified_gmt":"2018-10-02T18:55:41","slug":"new-regulations-for-private-sector-more-nos-than-yess","status":"publish","type":"post","link":"https:\/\/oncubanews.com\/en\/cuba\/economy\/entrepreneurship-in-cuba\/new-regulations-for-private-sector-more-nos-than-yess\/","title":{"rendered":"New regulations for private sector: more no\u2019s than yes\u2019s"},"content":{"rendered":"

A few days before the year of hibernation of self-employment in Cuba was up, the <\/span>new regulatory framework<\/span><\/a> finally saw the light.<\/span><\/p>\n

The very name with which this reorganization was baptized, \u201cimprovement process,\u201d gave the idea that, when that day came, we would all celebrate the appearance of a group of solutions that would put just order in the life of private businesses. However, the bottle for the celebration again will not be opened.<\/span><\/p>\n

It\u2019s not that there aren\u2019t positive aspects in the <\/span>new regulations.<\/span><\/a> They do exist. Having to use contracts for the use of the workforce, the increase in the limits for authorized expenses to deduct for the payment of taxes on personal incomes and the penalization of discriminatory attitudes due to skin color, gender and sexual orientation are good examples. The experiment of transportation in Havana also has potentials, as long as it is possible to attract private taxi drivers and transport workers.<\/span><\/p>\n

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A taxi with private permit makes a sign with the hand on its route in Havana, on March 10, 2018. Photo: Desmond Boylan \/ AP.<\/figcaption><\/figure>\n

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But the first thing that stands out after studying the legal regulations is that the solution aimed by them for the problems will continue being expressed in the daily life of the businesses. Its real causes were not tackled: the black market, the fiscal indiscipline, the use of name lending or \u201cfigureheads\u201d and other illegalities will survive this \u201cimproving\u201d attempt.<\/span><\/p>\n

In societies much more organized than ours and with solid control mechanisms, the struggle against this type of illegalities is the daily bread of governments. It is not very probable that among us they be contained through administrative measures without structural changes and economic measures.<\/span><\/p>\n

In the published documents there is abundant bureaucracy, paper work, inspections and inspectors, control agencies and levels of approval. They are the same mechanisms applied in other spheres of national life and which have demonstrated little effectiveness.<\/span><\/p>\n

The authorities have insisted that they are meeting some of the requests made by the private workers themselves. But those asked for out loud and which would have a greater impact continue being conspicuously absent.<\/span><\/p>\n

We continue lacking wholesale markets (in eight years only one has been opened). We continue yearning for a realistic and flexible tax system. We want the authorization to make commercial imports.<\/span><\/p>\n

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A barber shaves a client in his private business in Havana, on Tuesday July 10, 2018. Photo: Desmond Boylan \/ AP.<\/figcaption><\/figure>\n

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Something of the most transcendental among what has been announced is the new mechanism for the request and granting of permits, especially in the group of economic activities most in demand and which were \u201cfrozen.\u201d A written request will be presented containing, among other things, an affidavit on the origin of the financing and the investments to be made to start the activity.<\/span><\/p>\n

In addition, new levels of assessment of the businesses appear for several permits in the Municipal and Provincial Administration Councils.<\/span><\/p>\n

Through multidisciplinary groups at both levels, depending on the type of activity, the proposals are assessed case by case to certify that what is established by law is met. After the approval, which can take between one and three months, the General Supervision Department must visit the business to certify that it meets the characteristics approved for it.<\/span><\/p>\n

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 <\/p>\n

CAPTIONS:<\/span><\/p>\n

CUBA UNFREEZES SELF-EMPLOYMENT<\/span><\/p>\n

STARTING DECEMBER 7, 2018<\/span><\/p>\n

The 27 activities suspended since July 2017 are being unfrozen under new regulations.<\/span><\/p>\n

New permits are being created:<\/span><\/p>\n