UPDATE 2-Cuba approves law aimed at attracting foreign investment
(Adds quote, unanimous vote, background)
By Daniel Trotta
HAVANA, March 29 (Reuters) - Cuba's National Assembly passed a new foreign investment law on Saturday that aims to bring badly needed capital to the communist economy by offering steep tax cuts and promising a climate of investment security.
The assembly voted unanimously in a special session to approve the law, official media reported. It will become valid within 90 days.
The new law halves the profits tax from 30 to 15 percent and exempts investors from paying it for eight years, though it also appears to withhold many of the tax benefits from companies that are 100 percent foreign-owned. Those incentives are reserved for joint ventures with the Cuban state and investments linking foreign and Cuban companies.
Analysts and Cuban-based diplomats have expressed skepticism over the law, uncertain whether the one-party state has undergone a genuine change of heart and truly wants to attract foreign investors on international terms.
Areas such as agriculture, infrastructure, sugar, nickel mining, building renovation and real estate development are considered ripe for investment.
Cuba needs to attract $2 billion to $2.5 billion in foreign direct investment per year to reach its economic growth target of 7 percent, minister for foreign trade and investment Rodrigo Malmierca said on Cuban state television on Friday night. Continuación...