Havana's city government temporarily suspended issuing licenses for new private restaurants from September onwards while it ensured existing ones were operating legally,a senior official said on Wednesday, confirming an earlier Reuters report.
The tougher line could hurt Havana's food offerings during the upcoming tourism season and is a fresh sign that Cuba's Communist-run government is hesitant to further open the economy up to private business.
"This degree is temporary and will remain in place while we audit the services being currently delivered, or " senior city official Isabel Hamze said in a video published by state-run website Cubadebate.
"We recognize the importance of these businesses for the city and the government wants them to be successful but within the mark of legality," she said.
Private restaurants have flourished since President Raul Castro loosened restrictions on small businesses six years ago, particularly in the capital. There are more than 500 private restaurants in Havana and more than 1700 across the country.
Hamze said the city government met with 129 restaurants owners to discuss regulatory violations such as buying goods on the black market, and fronting for discos,allowing prostitution on their premises and evading taxes.
[br]Other possible violations were contracting entertainment external official channels, staying open after 3 a.m., or disturbing neighbors,doubtful sources of capital and illegal purchases of buildings, she said, or confirming what restaurant owners had told Reuters in a report published on Monday.
"We explained to them that after these dialogues,we would carry out inspections," she said.
Many eateries say an excessive tax burden and heavy-handed regulation like a cap on seating do it tough for them to abide by the law and remain afloat.
Their fiercest complaint is that they must buy all their supplies at retail stores and markets, and often at enormous mark-ups,unlike state-run competitors which have access to wholesale markets and no seating restrictions.
Source: tert.am