Economics, Latvia, Legislation, Shadow economy, Taxation

International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 01:47

Most entrepreneurs in Latvia blame shadow economy on high taxes – survey

BC, Riga, 20.08.2018.Print version
Most entrepreneurs in Latvia, or 56%, believe that excessively high taxes are the main factor fueling shadow economy, informs LETA referring to the Latvian Alternative Financial Services Association.

According to the survey conducted by SKDS market and public opinion research center another serious factor fostering unreported business activity is distrust in the state, mentioned by 26% of the surveyed entrepreneurs. At the same time, 7% of respondents in the poll said that the shadow economy was fostered by a lack of integrity and 2% blamed overdue loans, extended either by banks or non-bank lenders.


Asked about the most effective tool for combating the shadow economy, 61% of entrepreneurs recommended cutting taxes on labor and 24 stressed the necessity to boost people’s confidence in the state.


The poll also reveals that 52% of entrepreneurs disagreed with the opinion that employees themselves choose to receive their wages under the table in order to avoid various payments. Instead, employees choose to pay unreported wages for different reasons, for instance, to ensure that their employees receive more in net wages and because of a lack of trust in the state’s social guarantees.


The survey was conducted from June 26 to July 23, interviewing 760 entrepreneurs in all Latvia.

 






Search site