International Internet Magazine. Baltic States news & analytics
Wednesday, 07.10.2015, 07:13
A number of important bills have not been passed by Latvian Saeima and, as a result, the state budget has failed to collect EUR 30 million from the shadow economy, Finance Minister Janis Reirs (Unity) said in an interview with Latvian State Television this morning, reports LETA.
Keyword tags: Financial Services, Latvia, Legislation, Markets and Companies, Shadow economy
Banks are prepared to issue loans to healthy companies, however, the main hindrance for companies to obtain loans is problems related to the shadow-economy, the Latvian Association of Commercial Banks points out, commenting Economy Minister Dana Reizniece-Ozola's (Greens/Farmers) recent statements that Latvian banks' lending policies are too passive, and thus hinder Latvia's economic growth, informs LETA.
Even though there has been a 7% reduction in the number of persons working in Latvia who receive their salaries unofficially, there are still 18% of employed persons in the country who receive their salaries ''under the table'', and thus no taxes are being paid to the state, according to a study by the Latvian job market portal cvmarket.lv, reports LETA.
Speaker of Lithuanian Seimas, Loreta Grauziniene, opposes the proposal made by banks to charge for cash withdrawals. According to the head of Parliament, this is not the primary but rather an auxiliary measure in a fight against the underground economy, and it will not help solve the problem, informs LETA/ELTA.
The proportion of shadow economy in Latvia last year was 24.7% of the gross domestic product (GDP), while proportion this year could reach 23.6%, according to calculations by Dr. Friedrich Schneider from the Johannes Kepler University of Linz, informs LETA.
The Estonian Institute of Economic Research shadow economy survey shows that due to illegal alcohol and cigarettes, the Estonian state was deprived in 2014 of a total of EUR 70.3 million of tax money, Estonian economy and communications ministry announced, cites LETA.
A survey conducted by the Estonian Institute of Economic Research showed that while in 2013, the Estonian state was deprived due to the payment of "envelope wages" of 154 million euros in tax revenue, the loss of tax revenue in 2014 because of this reason was 92.5 million euros, LETA/Public Broadcasting reports.