Since January 1 Measures to Boost Economy

Since January 1 Measures to Boost Economy
Fecha de publicación: 
1 January 2024
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In the midst of the celebration of the 65th anniversary of the triumph of the Revolution, on January 1, some measures inserted in the Government Projections will begin to be implemented to correct distortions and re-boost the economy during year 2024, it was announced this Wednesday in the Informative Television Show Round Table.

Alejandro Gil Fernández, Vice Prime Minister and Head of Economy and Planning (MEP for its acronym in Spanish), and Vladimir Regueiro Ale, Minister of Finance and Prices (MFP), when announcing the scope of these actions aimed at encouraging the production of goods and services and benefiting certain sectors, they stressed that they will impact the quality of life of the population and the development of the country.

Although the resolutions corresponding to their official entry into force will be published in the Official Gazette of the Republic, these are measures to reduce tariffs on intermediate products and increase those finished or ready for sale, with a view to the elimination of tax exemptions such as way of increasing income to the State Budget, and also those approved for the benefit and improvement of the conditions of education and health workers.

Gil Fernández highlighted that there is a gradual implementation of the rest of the requirements, which will be presented in the Round Table, and clarified that those linked to price increases will not yet be applied, for example, fuel, transportation rates. electricity and passenger transport, nor gas.

The deputy prime minister reiterated the call of the head of the MFP to be tough on the issue of prices, especially when there’s no justification at this time to increase them, since in this regard no measure will come into force next week, and also with the tax collection.

He added that there’s a certain amount of tax evasion and the sustainability of the state budget depends on it; it depends on whether wealth and economic activity are generated, and taxes are paid timely, hence the insistence on the campaign to pay all taxes in a timely fashion, Gil Fernández highlighted.

In his opening words, he highlighted that the Government Projections to correct distortions and re-boost the economy during the year 2024, announced before Parliament by Manuel Marrero Cruz, Prime Minister, are for the benefit of the people and the nation, and with arguments he explained how they are far from being neoliberal or aimed at privatizing services and relegating the role of the State.

He recognized the objective of promoting savings in some of them, such as the increase in electricity rates for high consumers, in others to implement the policy of subsidizing people and not products, in several of them to correct distortions with the role of economic actors and their contributions, and also confront the fiscal deficit.

In this regard, Regueiro Ale pointed out that in the midst of a complex scenario, due to the limitations of financial resources and domestic insufficiencies, fiscal policy is aimed precisely at capturing the highest levels of income and reducing expenses, based on more efficient controls, ensuring and demand compliance with the payment of taxes.

He stated that once again the Budget supports the sustainability of sectors or social services like health, education, culture, and sports, but mechanisms for collecting, regulating and ordering tariffs are essential, which presupposes reviewing all exceptions, tax credits that have been granted to economic actors and their impact on generating higher levels of goods and services.

With the objective of increasing revenues to the Budget, as of January 1, it was decided to suspend the exemption for the payment of taxes by new economic actors, non-agricultural cooperatives, MSMEs and self-employed workers.

In a scenario where we have fewer offers and the needs of the population have not been met, we must be more rigorous and strong in the fight against abusive and speculative prices, in addition to abounding in actions aimed at confronting inflation, he said.

Translated by Amilkal Labañino / CubaSí Translation Staff

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