Havana, July 12: Cuba is intensifying regulations on its burgeoning private sector, aiming to rein in profits and bolster oversight as the communist-led government grapples with economic challenges. Two years after lifting a long-standing ban on private enterprises, authorities are rolling out six new decrees to bring order to the rapidly expanding sector, including the creation of a national institute for oversight.
Prime Minister Manuel Marrero emphasized that the measures are not meant to stifle small businesses but rather to regulate them effectively. Recent actions, such as price caps on essential goods and restrictions on profit margins, highlight increasing tensions between private enterprises and state-run monopolies.
In response to soaring inflation, the government conducted over 1,000 inspections nationwide, with a significant number of businesses found violating regulations. Fifteen businesses were shut down for accounting irregularities, while hundreds more are under scrutiny for possible tax evasion.
Despite their vital role in providing goods and services amid shortages, private businesses face challenges due to economic hardships exacerbated by the pandemic, U.S. sanctions, and inefficiencies in the state-dominated economy.
Reporting by Dave Sherwood; Additional reporting by Nelson Acosta; Editing by David Holmes