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
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.