Cuba increases tariffs on beer imports

The Cuban regime increased tariffs on beer imports, a measure that mainly affects micro, small and medium-sized businesses (MSMEs), which acquire the drink abroad to sell it in Cuba, since national production is very low. .

The Ministers of Finance and Prices and of Foreign Trade and Foreign Investment signed Joint Resolution 2 of 2024 on Thursday, which increases tariff rates on the import of malt beers.

From now on the tax will be 20% or 10% when the merchandise comes from "most favored nations", according to the resolution, published in theExtraordinary Official Gazette No. 25, from Thursday, April 24.

According to the Ministry of Finance and Prices (MFP) in itsweb, this update of the malt beer tariff is not an isolated measure, but is part of the so-called "projections to correct distortions and re-boost the economy."

The agency noted that it previously reduced customs tariffs on the import of raw materials by 50%, to favor national production, especially agriculture and food in general.

In the midst of the economic crisis that is shaking the country, beer production is very low, which forces its import by both private and state companies.

At this time, national brands are sold at a higher price than imported ones, a situation that could change now, since in the end the tariff increase will hurt buyers' pockets.

January, the regimeincreased by 30% (15% depending on the nation) tariffs for the import of tobacco, cigars, rumand other alcoholic beverages.

The increase includes raw or unmanufactured tobacco of heading 2401, cigars of heading 2402, other tobacco and tobacco substitutes of heading 2403, and products containing tobacco of heading 2404.

It also affects ethyl alcohol and denatured spirits of any strength (2207.20), spirits made from wine or grape pomace (2208.20), rum and other spirits from the distillation, after fermentation, of sugar cane products (all included). in definition 2208.40).

At the end of last year, thegovernment announced that it would increase taxes on micro, small and medium enterprises (MSMEs) by the import of finished products, although there would be a 50% reduction in the import of raw materials and intermediate goods, with a special focus on agricultural production and other foods.

Already then it was clarified that tobacco, cigars, rums and beers, among others, would see an increase in the tariff.

"We are going to regulate that; we are going to make a group of decisions that encourage everyone who imports raw materials to produce in Cuba and discourages everyone who imports products ready for sale, especially those produced in the country. "warned Prime Minister Manuel Marrero.

By intervening in the National Assembly of People's Power,Marrero announced a package of measures with increased prices and taxes on basic services such as water, gas, transportation and energy, and said that it is unsustainable to continue subsidizing products such as cigarettes and tobacco.

"We have to increase the prices of cigarettes and tobacco, which in many cases are purchased for resale. We have to modify the prices of liquefied gas; they will be reasonable increases, but necessary to sustain that system and reach more people," he said.