Cuba tax hike: Now up to 50%

Cuba has set income tax rates at 25 to 50 percent for its soon-to-be-expanded private sector, with the biggest earners paying the most taxes, according to official decrees published yesterday.

Cuba has set income tax rates at 25 to 50 percent for its soon-to-be-expanded private sector, with the biggest earners paying the most taxes, according to official decrees published yesterday.

The rates will range from nothing for those making 5,000 pesos — equivalent to $225 — or less a year to 50 percent for those in the highest bracket, which is more than 50,000 pesos, or $2,252.

The cash-strapped government is looking to the self-employed to increase tax revenues to help pay for expensive social programs such as free health care and education.

Last week, the government — in a story in Communist Party newspaper Granma — warned that tax scofflaws “will feel the weight of the law imposed upon them by those mandated to enforce it.”

Reaction on the street to the thick decrees, which came out in two separate editions of the gazette, was mixed.

 
 
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