Cuba cuts taxes, rates and encourages financing for farmers

HAVANA, Cuba, Apr 15 (ACN) Meisi Bolaños Weiss, Minister of Finance and Prices of Cuba, announced that rates for services to farmers were reduced, as well as taxes on income while banks will increase loans and other instruments to boost food production.

Among the new measures adopted by the government, the Minister mentioned a 20% discount on fumigation of rice plantations by plane, over 60 percent on pigs feed and a hefty reduction of bioproducts prices.

Another provision establishes the collection price at 6,922 pesos per ton of wet paddy rice, if the technological package is received, with a minimum yield of 4.2 tons per hectare.

If the producer doesn’t receive imported inputs, the price increases to seven 7,414 per ton, she said.

The novelties also include the creation of dual prices in two directions: centralized for the fixed destinations (industry, medical diets and family care system) and decentralized, directed to local governments and business groups once the social commitments have been settled.

These products include yam, plantain, sweet potato, mango, guava, pump fruit and tomato for industry.

It was also decided to lower the fees for procedures and services that private farmers, cooperatives and agricultural companies receive.

This will be carried out in accordance with the powers of the Higher Corporate Management Bodies and companies, in accordance with the cost sheets adapted to the conditions of each case and by mutual agreement of the parties concerned.

The Minister announced the State Budget will allocate some 1.8 billion pesos for bank loans and other services that reduce the cost of loans to producers.

In this sense, it was approved the constitution, by the cooperatives, of funds in the banks in order to be able to grant credits to their associates and as regards the agricultural insurance, it was decided to turn it into a leading service for the stimulation of the producers' yield.

This insurance covers the main production risks such as pests, diseases and extreme natural phenomena (drought, cyclones, floods, excess humidity, hailstorms and fires).

Regarding the tax regime, the Minister of Finance and Prices announced the granting of a five percent to two percent rebate on the payment of personal income tax, for income earned during 2021 and 2022, retroactively as of last January.

In addition to this, there are other provisions aimed at avoiding by all possible means non-payment to producers, to which Jorge Luis Tapia Fonseca, Deputy Prime Minister of the Republic, called an urgent task.

He said that it is necessary to increase the rigor on contract´s reviews that are carried out every month at the municipal level with the participation of the governments and producers, in order not to allow defaults or delays in payments, and pointed out that at this moment 960 producers in 55 municipalities of the country are owed money.

Tapia Fonseca said that strengthening the role of the legal advisors to farmers, as well as the discipline and demands, together with a greater link with the producers, could guarantee the success of this package of measures.

He also added the need to eliminate obstacles in the banking system and to carry out an integral and critical evaluation in terms of credit requests and their use, corporate responsibility in the control of efficiency and cost sheets, with a view to which it is essential to promote the creative thinking of the cadres, to develop economic analysis.

The measures have an impact on the State's budget, he said, of approximately 3.4 billion pesos this year alone, in view of which he reiterated the call for commitment and social responsibility.