THECUBAREVIEW 13 



(c) Partnerships, companies and individuals who have an establishment or carry- 

 on any business subject to the municipal tax on trade and industry ("Subsidio 

 industrial"), having a capital of more than $10,000 and those obtaining a proiit of 

 more than $2,000 per year, pay 4 per cent (Law of July 1, 1920). If domiciled 

 in a foreign country they are required to pay on the profits of business done in Cuba. 

 The stock companies subject to the 4 per cent profits tax are those which carry on 

 any business or industry included in the municipal tariff, which were previously 

 exempted from the profits tax by art. XI of military order No. 463 of the year 1900. 

 The tobacco industry pays the 4 per cent profits tax. 



(d) Insurance companies, including mutual insurance companies and commissions 

 of agents, pay 2^/^ per cent (Law of July 1, 1920). Surety companies are included 

 in this class. 



The Tax on Sl^gar Production consists of an ordinary tax of ten cents per bag 

 (on a basis of 300 pounds or more to the bag) of any kind of sugar, payable by the 

 owners, managers or persons in charge of the sugar factories and due when the sugar 

 is packed in the bags; and also an additional tax of 30 cents per bag when the sugar 

 sells at six cents or more per pound (Law of July 1, 1920). There is no tax at 

 present on the production or sale of molasses. 



The Documentary Stamp Tax (Laws of July 31, 1917 and July 1, 1920, and 

 Regulations of September 30, 1920) applies to consular invoices, receipts, legal docu- 

 ments, notarial contracts, stock exchange transactions, drafts and other commercial 

 paper (but not bank checks or deposits), steamship tickets (except third class tickets), 

 municipal licenses and other classes of documents. 



The Taxes on Inheritance and Transfers of Property are levied in accord- 

 ance with the Regulations of July 7, 1892, modified by Military Order No. 44 of April 

 19, 1899 and Law of October 13, 1914. 



The Tax on Explosives consists (Law of July 31, 1917) of $1 per each quintal 

 (hundredweight) of explosives deposited in the government's storehouses, the law 

 requiring all explosives to be so deposited. The revenue from this source is insignificant. 



8. Gross Sales Tax. (Impuesto sobre la venta bruta.) 



This tax will be effective from December 1, 1922, according to the law of October 

 9, 1922, printed on page US, and the rate 1 per cent. It is estimated that this tax 

 will yield about $15,000,000 annually. 



9. Taxes for Pension to Veterans. 



The law of April 11, 1922, provided that for the payment of the pensions to 

 veterans there should be set aside a certain part of the revenues of the State and 

 for this purpose also created the following taxes: (1) three per cent of the amounts 

 deposited as security by subscribers, consumers or employees of gas, electric, telephone 

 and similar companies; and (2) one per cent of all mutual bets made in any kind 

 of authorized gambling and one dollar for each cock-fight that is effected. The munici- 

 palities and provincial governments are required to turn in two per cent of their total 

 revenue from taxes to the state as a part of the veterans' pension fund. 



10. Miscellaneous Revenues. (Productos diversos.) 



Consist mainly of the funds which the municipalities are required to pay in on 

 account of the sanitary and charitable services, which are in charge of the national 

 government. These funds are estimated in this year's budget at $950,000. Other 

 items under "miscellaneous revenues" are fines by the courts and other fines, the 

 quota paid by the railroads to defray the expenses of the railroad commission ($50,000), 

 and other miscellaneous income. The entire group is estimated to produce $1,210,000 

 for the fiscal year 1922-23. 



MUNICIPAL AND PROVINCIAL REVENUES 



The principal sources of revenue for the 114 municipalities and the six provincial 

 governments are the taxes on real estate both rural and urban; on the carrying on of 

 trade or industry, levied by special tariff according to the kind of business or occu- 



