Cuba slows down self-employment sector

HAVANA, Cuba – About 7 years ago, Cuban President Raul Castro stepped divided from his hermit Fidel Castro’s perspective of a island’s business owners as “a category of parasites” who were means to “prosper from a work of others.” 

When Raul Castro implemented his mercantile reforms on a comrade island, some were means to spin their homes into tiny restaurants now famous as “paladares” and others were means to run bed and breakfast operations now famous as “casas particulares.”

Some Cuban-Americans in Miami noticed investing in this zone as an event to be means to assistance urge a lives of a kin they left behind. And instead of watchful for a supervision job, teenagers started to dream of carrying their possess business.

The manners of a diversion altered Tuesday.

“New authorizations for organisation activities will not be given until a soundness of self-employment has been achieved,” a supervision proclamation published Tuesday in the Granma newspaper said. 

Cuba’s Communist supervision announced that they will temporarily postpone arising new licenses to entrepreneurs. Cuban officials guess there are scarcely 568,000 Cubans who are self employed — about 12 percent of a work force .

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Officials positive them that a new measures are not meant to hurl behind a growth of a sector, though to urge it. Authorities are operative on fighting rascal and taxation semblance by building a process that would need a protected self-employee to use verifiable bank accounts. 

“Putting a residence in sequence is a top priority,” a proclamation said. 

During his many new debate to parliament, Raul Castro pronounced they were not renouncing a growth of a private sector, though it was required to “confront a illegalities and other deviations from a determined policy.”

To equivocate defying a revolutionary ideal of equality, Cuban officials wish to make certain that no one though a supervision is removing rich. Entrepreneurs have to compensate monthly taxes and spin over about half of their net-profit gain to a government.

Owners of “paladares” also face a plea of supply. They don’t have entrance to bulk vendors or wholesaler purveyors with rival prices. But they do have entrance to a black market, also famous as shopping “a la izquierda,” that cheats a government-controlled supply chain.

Cuban officials are also perplexing to figure out ways to forestall entrepreneurs from feeding a sepulchral black marketplace or enchanting in income laundering. How or when Cuban officials will do this stays an enigma. 

Local 10 News Andrea Torres contributed to this story from Miami. 

Copyright 2017 by WPLG The Associated Press contributed to this report. All rights reserved. This element might not be published, broadcast, rewritten or redistributed.

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