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Cuban state company workers to start paying taxes

HAVANA – The Cuban government says 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 1 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 $20 monthly, will begin making social security contributions of 5 per cent. Those who make more than 2,500 Cuban pesos, or about $100 monthly, will pay income tax of up to 5 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.

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