Cuba’s ambitious economic reforms may be coming up short.The government cut its growth forecast for this year–nearly a point off the previous estimate. Now, it is opening up to foreign investment with a new law that goes into effect this month.
The law cuts taxes on profits by about half, to 15 percent, and make companies exempt from paying taxes for the first eight years of operation.
An exception for companies that work in the exploitation of natural resources, such as nickel or fossil fuels, would establish taxation rates in such cases as high as 50 percent.
Foreigners doing business with the island would be exempt from paying personal income tax. Wholly foreign-owned investment projects would be explicitly allowed, a rarity for Cuba.
CCTV correspondent Michael Voss reports from Havana with more.