Cuba details taxes for the self-employed

Self-employed taxi driver in Cuba Cuba hopes growing its private sector will help speed up economic development

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The Cuban government has outlined the taxes that will have to be paid by the country's growing number of self-employed workers.

It is the latest stage of President Raul Castro's reforms to move Cuba away from a solely state-run economy.

Self-employed workers will have to pay 10% income tax, while those who take on staff will pay more.

It comes after the government announced last month that it was laying off half a million state workers.

Cuba's new tax code is detailed in the latest edition of the country's Communist Party newspaper - Granma.

The article includes an explanation that no government can provide services without gaining tax revenues.

In addition to the 10% income tax, workers will pay another 25% into a social security account from which they will in time draw a pension.

The coverage in Granma adds that successful businesses will see their tax burden rise as they take on more staff.

The government is reducing the once all-encompasing role of the state in the hope that it will boost a stagnant economy.

However, people setting up their own firms will be limited to just 178 professions, including car maintenance and rabbit farming.

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