{"id":99598,"date":"2017-08-03T17:02:42","date_gmt":"2017-08-03T21:02:42","guid":{"rendered":"http:\/\/oncubamagazine.com\/?p=99598"},"modified":"2017-08-03T17:02:42","modified_gmt":"2017-08-03T21:02:42","slug":"handing-over-of-licenses-for-private-work-in-cuba-suspended","status":"publish","type":"post","link":"https:\/\/oncubanews.com\/en\/cuba\/economy\/cuban-economy\/handing-over-of-licenses-for-private-work-in-cuba-suspended\/","title":{"rendered":"Handing over of licenses for private work in Cuba suspended"},"content":{"rendered":"

The Cuban government temporarily suspended the handing over of licenses for a group of private work activities, officially called self-employment.<\/p>\n

The measure forms part of \u201ca systematic process of checking and perfecting, geared at correcting deficiencies,\u201d reported the island\u2019s First Deputy Minister of Labor and Social Security Marta Elena Feit\u00f3.<\/p>\n

According to what was published this Tuesday in the Gaceta Oficial Extraordinaria No. 31<\/strong>, until this process concludes \u201cit was decided to not give new authorizations\u201d for some 20 of the activities, among them the rental of homes and rooms; gastronomic services in cafeterias and restaurants (paladares); the swapping and selling and buying of homes; the repair of electronic equipment; and the jewelry business.<\/p>\n

In addition, there will definitively be no more authorizations for activities of \u201cwholesale seller of agricultural and livestock products\u201d; \u201cretail seller of agricultural and livestock products\u201d; \u201cstreet sellers of agricultural products\u201d; \u201cbuyer\/seller of records\u201d; and \u201coperator of recreation equipment\u201d (for rustic equipment).<\/p>\n

However, the Gaceta Oficial<\/strong> specifies that \u201cthe workers who at present are authorized to carry out the mentioned activities in the abovementioned sections can continue carrying them out.\u201d<\/p>\n

It also specifies that, as a sole transitory provision, the requests for authorization to\u00a0 carry out the activities now suspended or eliminated, which are in the paperwork stage before the coming into force of the new resolution this August 1, \u201care governed by what is established in the legal provisions for which they were initiated.\u201d<\/p>\n

In statements to the daily Granma<\/strong>, Feit\u00f3 explained that the measures aim is that \u201cno action remain outside the law.\u201d<\/p>\n

A recent assessment of private work in Cuba demonstrated the presence of illegal activities among which the deputy minister cited the use of raw material, materials and equipment of illegal origin; the non-compliance of the payment of taxes and the under declaration of incomes; the imprecisions in the control, and the deficiencies in the economic contracting for providing services or supplying products.<\/p>\n

Feit\u00f3 said that the adopted decisions are in correspondence to what was analyzed in the most recent meeting of the Council of Ministers, and said by President Ra\u00fal Castro at the closing session of the most recent meeting of the National Assembly of People\u2019s Power. She commented that in principle \u201cauthorizations will not be granted in places where criminal events have been detected.\u201d<\/p>\n

In the deputy minister\u2019s opinion, the new measures \u201care not a roll back in the development of the activity\u201d since \u201cthe aim is to consolidate with them the organization and control of self-employment, in such a way that it continues advancing in an organized and efficient way.\u201d<\/p>\n

NO DATE BUT WITH CHANGES<\/h3>\n

The Gaceta Oficial Extraordinaria<\/strong> does not give a tentative date for the culmination of the checking and perfecting of private work. However, Feit\u00f3 specified to Granma<\/strong> that \u201conce the rest of the necessary legal regulations, among other decisions, are ready, a group of related activities will be put into practice, with which it is sought to reduce the existing dispersion and to perfect their reach.\u201d<\/p>\n

The Labor and Social Security deputy minister gave as an example the upcoming implementation of the \u201cbeauty service\u201d modality, which will include seven activities of self-employment separated until today: barber, makeup artist, masseur, manicurist, hairdresser, hairdresser combing braids and traditional hairdresser.<\/p>\n

\u201cStarting with the grouping together it will be possible to speed up and reduce the administrative paperwork, decrease the documentation, and in turn expand the profile of the activities by offering a more comprehensive service,\u201d she said.<\/p>\n

In other cases, an activity still in force will be divided according to its specifications. It is the case of \u201cmaker\/seller of food and beverages through gastronomic services in restaurants,\u201d based on which two have been designed: \u201cgastronomic service in restaurants\u201d and \u201cbar service and recreation,\u201d whose reach will be defined in the regulations to be published once the reorganization has concluded.<\/p>\n

Feit\u00f3 Cabrera advanced as another of the novelties authorizing the owner of a private business with hired workers the possibility of naming one of these to assume his duties. This will be authorized because of a prolonged sickness, of the owner or his relatives, or because of his leaving the country, in which case \u201cthis prerogative will be given for the period of three months.\u201d<\/p>\n

In relation to private transportation workers, the modification of the license regulation is planned, \u201creinstating its municipal, provincial or national reach, as well as the updating of the requirements for its granting,\u201d D\u00e9borah Canela Pi\u00f1a, principal specialist at the Ministry of Transportation, specified.<\/p>\n

Canela Pi\u00f1a pointed out that the technical inspection of the vehicles, the analysis of the drivers\u2019 records and the organization of the services in route, car pool, terminals or points of embarkation has already started being applied.<\/p>\n

For Havana \u201cthe association of private transportation workers to the cooperatives created of route taxi drivers and an experiment will be initiated that covers all the vehicles, between four and 14 passengers, who wish to operate on routes of the country\u2019s capital,\u201d the specialist commented.<\/p>\n

Those who form part of the experiment will have benefits like buying fuel at differentiated prices to operate, access to the wholesale market to buy tools, parts, spare parts and accessories at retail price minus a discount of 20 percent.<\/p>\n

The vehicles and car pools must point out \u201ccorrectly\u201d the routes, prices and schedules. \u201cThe price of the routes will be established by stretches that will not be more than 8 kilometers, with a price of 5 CUP,\u201d Canela Pi\u00f1a affirmed.<\/p>\n

PAYING WHAT HAS TO BE PAID AND ON TIME<\/h3>\n

The perfecting of private work in Cuba also includes modifications in the tax aspect. Vladimir Regueiro Ale, director of incomes of the Ministry of Finances and Prices, explained that the unification of a group of activities and the recognition of others \u201cleads, among other measures, to determining for each case new tax installments.\u201d<\/p>\n

\u201cThere is an increase of minimum installments in some cases, but also reduction in others,\u201d he advanced.<\/p>\n

In the tax for the use of labor force \u201cthe minimum tax established by the Tax Law will be applied,\u201d which is 5 percent. In addition, the exemption of payment for the first five workers will be eliminated and a progressive base will be imposed for its calculation, according to the number of hired workers.<\/p>\n

Granma<\/strong> specifies that \u201cfor the first five workers the tax will be 5 percent of the mean monthly wage corresponding to the province; from the sixth to the tenth it will be applied on the amount resulting from the sum of two mean wages; from the 11th to the 20th on the number of three mean wages; and from 21 onwards six mean wages will be taken as the base for the calculation.\u201d<\/p>\n

Regueiro Ale affirmed that \u201cin general, a similar balance has been maintained\u201d between the amount of activities that currently pay taxes by the general regimen and those that do so by the simplified one.<\/p>\n

Another novelty will be the \u201cgradual\u201d implementation of the system of fiscal bank accounts. The director of incomes of the Ministry of Finances and Prices said that a group of private workers \u201cwill start being demanded the creation of a bank account with fiscal transcendence, in which the operations of incomes and expenditures related to the activity they exercise should be reflected.\u201d<\/p>\n

This information will be at the disposition of the National Office of Tax Administration during the entire process of control and verification of the payment of taxes of these workers. The group by which this procedure will be initiated includes home rentals, construction services and gastronomic services in paladares and bars, as well as for the transportation workers only in the case of Havana.<\/p>\n

Granma<\/strong> concludes that \u201cputting the house in order\u201d is a \u201cmaximum priority\u201d for the Cuban State and affirms that the new measures do not seek \u201cto roll back\u201d private work in Cuba but rather to put an \u201cimmediate\u201d stop to those self-employed who \u201cviolate the established regulations and get lost in the ins and outs of illegal activities and disorganization.\u201d<\/p>\n

According to data given by the daily, at the close of the first semester of the year 567,982 persons exercised work as self-employed in Cuba, which represents 12 percent of the total of the island\u2019s workers. Thirty-two percent of those incorporated to that labor modality are young; 33 percent are women; 16 percent are also linked to some state center; and 11 percent are pensioners.<\/p>\n

 <\/p>\n

Beyond these figures, Granma<\/strong> recognizes \u201cthe unquestionable validity\u201d of this employment option, to which it attributes an increase in the \u201csupply of goods and services with acceptable levels of quality,\u201d and which allow the Cuban State \u201cto concentrate on important activities for economic development.\u201d<\/p>\n

In October 2010 measures started being applied to relax and expand private work in Cuba, authorized on the island since the 1990s. Starting then the allowed activities and the control of their exercise was increased, prohibitions were eliminated for the marketing of new productions and services, and a special regimen of social security was approved for the workers of this sector.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Cuban government temporarily suspended the handing over of licenses for a group of private work activities, officially called self-employment. The measure forms part of \u201ca systematic process of checking and perfecting, geared at correcting deficiencies,\u201d reported the island\u2019s First Deputy Minister of Labor and Social Security Marta Elena Feit\u00f3. According to what was published […]<\/p>\n","protected":false},"author":3134,"featured_media":99603,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[13904],"tags":[],"ppma_author":[33546,8689],"class_list":["post-99598","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cuban-economy"],"acf":[],"yoast_head":"\nHanding over of licenses for private work in Cuba suspended | OnCubaNews English<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/oncubanews.com\/en\/cuba\/economy\/cuban-economy\/handing-over-of-licenses-for-private-work-in-cuba-suspended\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Handing over of licenses for private work in Cuba suspended | OnCubaNews English\" \/>\n<meta property=\"og:description\" content=\"The Cuban government temporarily suspended the handing over of licenses for a group of private work activities, officially called self-employment. 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