THE CUBA REVIEW 



19 



Cuban Profits Tax 



Agitation for the immediate repeal of 

 the Cuban 4 per cent tax on profits has 

 just been inaugurated by the Permanent 

 Committee for Economic Defense, which 

 is now seeking the support in this cam- 

 paign of all chambers of commerce, eco- 

 nomic societies, and similar organizations 

 in Cuba. Arguments against the continua- 

 tion of the profits tax are based on the 

 ground that collecting has been inefficient, 

 the receipts thus far having amounted to 

 only $486,738 for the first six months of 



1921, $1,655,901 for the fiscal year 1921- 



1922, and $448,242 for the second half 

 of 1922 — an average of $1,295,440 per 

 annum. It is also claimed that general 

 approval of the 1 per cent sales tax, which 

 is part of the $50,000,000 loan law of 

 October 9, 1922, was only given upon the 

 express understanding that the profits tax 

 would be repealed when the sales tax 

 should become effective. Before the enact- 

 ment of the sales tax law a provision au- 

 thorizing the President to repeal the profits 

 tax was struck out. 



The profits tax is of interest to American 

 concerns which have subsidiaries in Cuba, 

 for it is levied against profits in excess 

 of $2,000 per annum realized by concerns 

 operating in Cuba. 



Limited Market for Motor Cycles in 

 Habana 



The market for motorcycles in the vicin- 

 ity of Habana, Cuba, is limited, owing 

 principally to the lack of good roads and 

 to the narrowness of the city streets. In 

 the course of a few years there is likely 

 to be considerable highway construction, 

 but at present practically all roads leading 

 from Habana in any direction are so 

 bumpy and worn that travel by motor 

 vehicles is not a good means of transporta- 

 tion, except to and from points otherwise 

 inaccessible. 



Improvement in Cuban Finances 



The development of the financial side of 

 the Cuban economic structure is keeping 

 pace with the industrial and commercial 

 improvement, comprising satisfactory sugar 

 crop prospects with higher prices, and en- 

 couraging tobacco outlook, and increasing 



imports and bank clearings. Already $7,- 

 770,000 of the preceeds of the $50,000,- 

 000 loan negotiated in the United States 

 have been placed in circulation and depart- 

 mental obligations amounting to $1,200,000 

 due July 1, 1922, have been approved for 

 payment, though no payments have been 

 made up to the present. 



Of the $7,770,000 total $5,900,000 has 

 been expended for salaries and wages due 

 prior to July 1, 1922, and $1,000,000 for 

 pensions also due before the beginning of 

 the present fiscal year. Expenses in con- 

 nection with the internal funded debt of 

 the Republic have been paid to the extent 

 of $870,000. 



Treasury Receipts Increase 

 Government revenues for January 

 amounted to approximately $6,100,000, a 

 record for the present fiscal year, and ex- 

 ceeded budgeted expenditures for the seven 

 months ended January 31 by about $2,- 

 220,000. The proceeds of the 1 per cent 

 gross sales tax will increase this surplus, 

 but details concerning this are still unavail- 

 able. Numerous small extra budgetary ex- 

 penditures will reduce the total slightly. 

 Receipts for the first six months of the 

 fiscal year totaled $29,171,396, an increase 

 of $927,597 over the figure for the corre- 

 sponding period of the preceding year. 



Customs Collection Gain 

 Customs receipts for all ports for Jan- 

 uary, 1923, reached a total of approxi- 

 mately $3,400,000 as compared with $2,- 

 300,000 for January, 1922. This improve- 

 ment in customs revenue is distinctly en- 

 couraging, partly on account of the result- 

 ing increase in Cuban Treasury- funds and 

 partly because of the healthier business 

 conditions with increased capacity for ab- 

 sorbing imports which it indicates. 



Outlook for Lumber and Box Shooks in 

 Cuba 



Lumber stocks in general in Cuba are 

 quite low at present, according to an im- 

 porter of several lines of merchandise and 

 especially lumber. He believes that 1923 

 will be a normal year for lumber con- 

 sumption. There is a strong demand at 

 present for box shooks for the packing of 

 winter vegetables, shipments of which will 

 commence shortly. 



