MercoPress. South Atlantic News Agency

Cuba outlines taxes to be paid by the growing number of self-employed workers

President Raúl Castro announced half a million state workers will have to transfer to the private sector

Cuban government has outlined the taxes that will have to be paid by the country's growing number of self-employed workers. It is the latest stage of President Raul Castro's reforms to move Cuba away from a solely state-run economy.

Self-employed workers will have to pay 10% income tax, while those who take on staff will pay more. It comes after the government announced last month that it was leaving half a million state workers redundant.

Cuba's new tax code is detailed in the latest edition of the country's Communist Party newspaper - Granma. The article includes an explanation that no government can provide services without gaining tax revenues.

In addition to the 10% income tax, workers will pay another 25% into a social security account from which they will in time draw a pension.

The coverage in Granma adds that successful businesses will see their tax burden rise as they take on more staff.

The government is reducing the once all-encompassing role of the state in the hope that it will boost a stagnant economy. However, people setting up their own firms will be limited to just 178 professions, including car maintenance and rabbit farming.