Financial Services, Latvia, Shadow economy, Taxation

International Internet Magazine. Baltic States news & analytics Wednesday, 21.08.2019, 00:22

Fight against shadow economy should ensure tax revenue rise by 5% - Jaunzeme

BC, Riga, 05.03.2019.Print version
Fight against shadow economy should ensure tax revenue rise by at least 5 percent, said State Revenue Service (VID) general director Ieva Jaunzeme in an interview with LETA.

She said that the indicator showing that shadow economy is above 20% of the gross domestic product (GDP) is not a positive one.


“We still have a potential, there are many tax gaps, therefore we can easily achieve a 5% revenue growth by fighting shadow economy. Every year tax revenues grow by 1 percentage point, and it is much in the context of EUR 9 bn in overall revenue,” said Jaunzeme.


Jaunzeme named construction and services sector, including retail, taxicabs, transportation, as the areas where shadow economy can be reduced considerably.

Asked about the value added tax (VAT) carousels, Jaunzeme said that in this case it is a story about cooperation and efficiency of VID structures.


As reported, Jaunzeme in early February was appointed as the new director general of the State Revenue Service (VID).






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