Sale of imported cars in Cuba: This is how the new prices stand

The Minister of Transport, Eduardo Rodríguez Dávila, shared on social media a set of recent data about the import prices of vehicles in Cuba.

In his publication, he included two infographics that detail how the Cuban government sets the prices of imported vehicles.

Rodríguez specified that they used a hypothetical value of 10,000 USD "to facilitate understanding." This controversial topic has sparked criticism against the regime for the high prices of imported cars on the island, to the point of being an impossible dream for highly qualified professional workers in the country.

Formation of the selling price of imported vehicles

The process to determine the final price of vehicles in Cuba includes several components. First, the Supplier Price delivered in Cuba is considered, which is the initial value of the vehicle, including freight and insurance. This base price in the infographic is 10,000 USD or euros.

To this base price, the Import Costs are added, which include tariffs, customs services, handling, and transfer of the vehicle, representing approximately 6% of the supplier's price, which amounts to 600 USD or euros.

The next component is the Trade Margin Rate, which is a margin applied by the selling entity in Cuba. This margin can reach up to 20% of the base price, resulting in an increase of 2,120 USD or euros, bringing the selling price of the marketer to 12,720 USD or euros.

Additionally, a Special Tax by Segment or Range is applied, which varies according to the type of vehicle. For high-end cars, this tax is 35%, equivalent to 4,452 USD or euros, while for other types of vehicles it can be 25% or 15%.

The total to be paid by the buyer is determined by adding all these components. For example, a car, SUV, or pickup truck has a final price of 15,900 USD or euros; a luxury car reaches 17,172 USD or euros; while vehicles of other classes such as minibuses, motorcycles, or tricycles have a price ranging from 14,628 to 15,264 USD or euros.

Additional Taxes and Exemptions

The pricing system also includes additional taxes for those acquiring more than two vehicles, with rates that progressively increase up to 100% starting from the sixth vehicle.

However, electric cars enjoy certain exemptions, such as the absence of tariffs and a reduced percentage in customs services, despite the fact that there is no infrastructure in place in Cuba to service these vehicles.

Prices and policies have generated extensive debate on social media. Users have questioned the logic behind taxing freight value and have expressed their concern about the high costs.

A notable comment came from an intensive care doctor in a Cuban hospital who asked how many years he would have to work to be able to buy a car, given the current policies.

Regulatory context and recent measures in Cuba

In July, the Cuban government allowed the importation of vehicles for Cubans on missions abroad, including medical brigades and diplomatic personnel, as discussed in the National Assembly of the People's Power.

In addition, Prime Minister Manuel Marrero Cruz mentioned a new policy for the transfer of ownership of motor vehicles, which is under review for implementation.

Likewise, the import and marketing of vehicles in convertible currency will continue, adjusting prices for individuals and legal entities, with the aim of facilitating access to means of transportation and raising funds for the development of public transportation in Cuba.

These measures are part of the update to the car marketing policy in Cuba, following the approval of Decree 83/2023, which regulates the transfer of vehicle ownership and its marketing in freely convertible currency.

The revenues obtained from tariffs and taxes will be ensured by the regime to be allocated to the recovery and development of public transportation in the country.

This topic has generated intense debate on social media and criticisms of the government, amid the severe transportation crisis in Cuba. Authorities from the sector will be on the pro-government program Mesa Redonda tonight to provide more specific details about the price of imported cars in Cuba.