The Cuban government reduces the purchasing capacity of state-owned companies from private ones.

The Cuban government published new regulations on Thursday that reduce the purchasing capacity of state-owned companies from private suppliers, establishing a new obstacle to the development of the private sector.

According to Resolution 209/2024, published in La Gaceta de Cuba, state-owned companies can set prices and rates with private suppliers; however, it limits the profits of the latter by establishing that they cannot exceed 30% of the total cost and expenses, including sales and service taxes.

However, once again, a measure is approved that ignores the informal market of buying and selling currencies, which often determines the final price of products in the private sector.

The text of the resolution specifies that the measure aims to contain the expenses of state entities in their economic relationships with non-state management forms, promoting "more efficient and controlled economic management."

In other words, limiting the state sector in its relationship with non-state forms is the same as directly hindering the development of private entities.

Finally, the resolution grants authority to provincial and municipal councils, who will be authorized to approve the maximum prices and rates of the goods and services they select, taking into account the specific characteristics of each territory.

The measure to reduce the purchasing capacity of state-owned companies for private entities is part of a group of resolutions approved this Thursday by the Cuban government.

Among them is to extend the tariff exemption for food, hygiene products, and medicines to travelers arriving in the country from abroad, a decision that was announced in the Official Gazette of the Republic of Cuba No. 57, in its Ordinary edition.

The regulation "authorizes, exceptionally and temporarily until September 30, 2024, the importation without commercial purposes, without limits on its value, and exempt from the payment of customs duties on food, hygiene products, medicines, and medical supplies, through passengers as accompanied luggage."

The government insists that this measure is "exceptional" and acknowledges that it is due to the persistence of scarcity and limitations in the supply of food and other essential products in the country.

In addition, the Cuban regime also approved Resolution 212/2024, which extends, until September 30, 2024, the authorization for the non-commercial import of electric generators over 900 watts, amidst an energy crisis that has been affecting the nation for several years.