Cuba applies as of today new rules on entities' profit margins

 HAVANA, Cuba, Jul 1 (ACN) According to Resolution 209/2024 of the Ministry of Finance and Prices (MFP), as of today only prices and tariffs that recognize up to 30 % profit margins in contractual relations between companies, budgeted units and new economic actors will be accepted.

Such regulation must contribute to the contention of inflation in the country and in order to achieve its compliance, control mechanisms have been designed and will continue to be reinforced, said Vladimir Regueiro Ale, head of that ministry, to the local media, in view of the doubts and criteria received since its publication in the Official Gazette number 57 on June 25.

We have established a regulation that has a scope towards the non-state management forms, but above all it is a responsibility that we are giving to the companies and to the budgeted units so that in their purchases of goods and services they make a better use and optimization of the assigned resources, he explained.

As has been reported, as part of the Government's projections to correct distortions and re-boost the economy, and taking into account the high level of inflation in recent years, actions were recently approved aimed at containing the expenses incurred by state entities in their economic relations with non-state forms of management.

According to Regueiro Ale, such order will be progressive and is part of a strategy to continue reducing inflation levels, but the main thing now is to contain expenses.

He clarified that the limits of profit margins for the business sector range between 15 and 30 %, and with an extraordinary exceptional character that 30 % can be implemented or applied for high technology and innovation companies.

The regulation allows the provincial and municipal administration councils to approve the maximum prices and tariffs of the goods and services they select, from among those acquired by the state entities from the non-state sector, taking into account the particularities of each territory.

Regarding the controls of the resolution, the Minister pointed out that they are those established or should be strengthened from the budgeted units, in which the education, health, sports and culture sectors concentrate resources; and also from the local governments, the agencies of the economic boards.
There are also the teams of senior management organizations, which, although they have decentralized powers to form prices, also have their own auditing and supervisory bodies.