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Bring 1,5 billion EUR back into legal flows

Ilustracija

The Government announced couple of days ago, for the very first time, that grey economy makes 30-40% of GDP, which means that it ranges from 1,5 billion EUR, to be more precise, ranges from 1,3 billion EUR to 1,7 billion  EUR.

The data so far indicated 20-25% of GDP. Darko Radunović, Minister of Finance said recently that grey economy accounted for over 30% of GDP and a day or two earlier representatives of Tax Administration said that it amounted 30-40%. At the end of last year, the state started the fight against grey economy, smuggling of cigarettes, alcohol and other excise merchandise, against unregistered employees, evasion of VAT(120-150 million EUR on an annual basis), “wild” companies and it also announced e-fiscalization.

Representatives of the Employers’ Union say that fight against informal economy refers primarily to the punishment of registered businessmen who were forced to “slip” into the grey zone in order to maintain their business.

Head of the sector for International Cooperation and Economy within the Employer’s Union, Mirza Mulešković, says that nothing is done in order to suppress unregistered business activities.

“We hope that the Government will start tackling main problems in the fight against grey economy and that primarily means creation of the business environment which will be favorable for economy. That includes harmonization of laws, adaptation of the regulation to the actual state in  the economy, efficient work of inspection services, reduction of work costs and then, finally, punishment policy”, thinks Mulešković.

Representatives of Montenegro Business Alliance think that such serious problem can’t be solved overnight.

“Grey zone exists even in the most developed countries. However, the higher the percentage of grey economy, the higher the risk for legal business and overall economy. People who do their job legally and regularly settle their obligations towards the state are now in unequal position”.

President of the Parliament Committee for Economy, Predrag Sekulić, said that the Parliament would support any legal proposal aimed at the suppression of grey market but he also thinks that some more efficient actions in that direction are necessary.

“Not only does the budget suffer, but insecurity and unfair competition is being introduced into the economic environment. Those who pay the taxes regularly feel cheated since they are not protected against unfair competition”, points out Sekulić.

He sees solution in the creation of law model that would enable stronger market control. Also, the municipalities should engage.

Economic analyst, Predrag Drecun, isn’t surprised about the fact that grey economy in Montenegro amounts up to 40%.

“I estimated so earlier. Unfortunately, grey market for us is our way of life and behavior. Grey market is the answer to the question how people manage to get by with low pensions and salaries, or even without them”, says Drecun.

Drecun agrees with the new fiscalization system if it won’t slow down the business.

 

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