Take responsibility, pay your taxes and then make demands
“Surely now you pay more taxes,” is the phrase I hear the most since the Cuban government, through Official Gazette No. 94, allowed the creation of new actors in the country’s economy. And yes, the phrase may be true, that now in the new economic scenario more taxes are paid. But is this so bad?
This already popular phrase may be impulsive. But does it reflect reality? Not when we make an analysis of the real benefits that these new changes offer us.
Today it is important to understand that taxes are responsible, in part, for making services such as health and education free to all. Empowering private businesses should have always been a priority.
The non-state sector is growing by leaps and bounds every year. Why? Well, this group of entrepreneurs committed to their country have shown resilience over time, to keep going and grow in an economic environment unfavorable to them. If you add to this the fact that right now, finally, they are going to experience the long-awaited economic opening, this is the right time for private entrepreneurs to demonstrate their potential.
A broad corporate purpose, legal status, possibilities of contracting national suppliers under equal terms, import facilities and purchases of raw materials, investment under legal mechanisms, authorization to sell in freely convertible currency, recognition of the figure of the partner as the main owner of MSMEs, among others, are seen as the most popular benefits.
This is why there are more taxes, because the opportunities have grown.
One of the aims of the government is for these new companies to contribute values to society. For this reason, 1% of the income of MSMEs has been added to Local Development Taxes. This contribution will allow municipal administrations to have liquidity for the repair and maintenance of the localities surrounding these businesses.
One of the most striking actors are the Local Development Projects (LDP) created with the purpose of adding values to society that go from the hands of the people who generate income to end up benefitting their wider communities. This is not only based on the hiring of employees, but also social programs paid for by these same businesses. Thanks to this figure, taxation will be much lower and attractive. It will even be possible to create MSMEs in these same projects.
Something that hit the self-employed sector was the authorized percentage for the deduction of expenses. This measure, far from limiting the growth of businesses, meant that often, not declaring all income, in order to avoid paying higher taxes, was an opportunity and not an illegality. As a result, tax returns were lower. Today, this would be one of the benefits to be taken into account: businesses will be able to deduct 100% of their expenses and will be able to take into account the investments made in them, without having to hide them.
Paying taxes has always been a responsibility and a duty. This exercise should not spark fear. It is necessary and important to contribute. Forming part of the process and the development of society should be the rule every day. This will not only allow us to demand more as active economic actors, but will also help us to advance faster each day.