Cuba to lift 10-pct tax on USD

Source: Xinhua | 2020-07-18

Cuba announced Thursday that it will eliminate a 10-percent tax on U.S. dollars.

"Removing penalty on the U.S. dollar will benefit Cubans on the island and abroad alike. This will provide them with more purchasing power," Cuban Economy Minister Alejandro Gil told state TV Mesa Redonda Internacional.

The tax, which has been effect since 2004, will be lifted on July 20, to absorb more hard currency in response to the country's economic crisis caused by the COVID-19 pandemic and the tightened U.S. economic sanctions, Gil said.

The decision will allow citizens to use dollars to buy food, hygiene products and other goods via bank cards from nearly 70 stores.

Since last year, Cuba has begun to allow the public to buy with dollars imported goods such as electronics and car parts sold at state-operated stores.