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Cuban state company workers to start paying taxes

Published:Friday | September 2, 2016 | 12:00 AM

The Cuban government said in a statement carried by state media, that workers for government companies will start paying social security contributions and taxes on their salaries in October.

The move will affect more than one million workers in a country in which most people have been unaccustomed to paying taxes over the past half-century.

Workers at state firms earning more than 500 Cuban pesos, or around US$20 monthly, will begin making social security contributions of five per cent. Those who make more than 2,500 Cuban pesos, or about US$100 monthly, will pay income tax of up to five per cent.

Workplaces will automatically deduct the contributions from employees' salaries.

Some workers in the health, accounting, education and other sectors began paying social security and taxes in recent years.