In Cuba, new legislation came into force today that establishes a maximum profit of 30 per cent in the economic contracting of state entities with non-state forms of management.

On 27 June, the Official Gazette of the Republic published Resolution 209 of 2024 of the Ministry of Finance and Prices (MFP), which regulates commercial relations between the country’s economic actors, and specifies that the acquisition of goods and services has a maximum profit rate of 30 percent of the total costs and expenses.

The regulation adds that the amount corresponds to the application of sales and service taxes.

It also specifies that provincial councils and municipal administration councils are empowered to approve the maximum prices and rates for the goods and services they select from among those procured by state entities from the non-state sector, taking into account the particularities of each territory.

On the other hand, the extension of tariff benefits to non-commercial imports by natural persons of foodstuffs, cleaning products, medicines, medical supplies and electrical plants will also come into force on this day.

The measure extends the application of a resolution with similar purposes, issued in March 2024 by the MFP, whose period of validity ended on 30 June and is now extended until 30 September 2024.

This decision corresponds to the persistence of internal limitations in the supply of food and other products, mainly due to the impact of the US government blockade and the international economic crisis.