The share of gray economy in Bulgaria varies between 25 and 30 per cent, ministers said during a discussion on gray economy effects on Bulgaria and measures for its reduction.
Labour and Social Policy Minister Emilia Maslarova said as quoted by Focus news agency that countries following regulations in the sphere have gray economy from 10 to 12 per cent.
One of the main reasons for gray economy presence is employment of people without labour contracts, Maslarova said.
According to National Statistical Institute (NSI) data, between 18 and 20 per cent of working people lack full social securities. The rest receive minimal securities Between a quarter to one third of the working people having contracts get more than the sum declared in the agreement.
Finance Minister Plamen Oresharski said that tax reduction is not the best decision to deal with gray economy because neither too high nor too low taxes are effective. He said that balance should be found.
Problems with budget revenue from unpaid tax collection feature among the most serious consequences of gray economic activity, former finance minister Milen Velchev said. Another negative effect was crime hindering investment in the country, Velchev said.
He said that gray economy could be restricted through administrative control and economic incentives introduction.
Labour and Social Policy Minister Emilia Maslarova said as quoted by Focus news agency that countries following regulations in the sphere have gray economy from 10 to 12 per cent.
One of the main reasons for gray economy presence is employment of people without labour contracts, Maslarova said.
According to National Statistical Institute (NSI) data, between 18 and 20 per cent of working people lack full social securities. The rest receive minimal securities Between a quarter to one third of the working people having contracts get more than the sum declared in the agreement.
Finance Minister Plamen Oresharski said that tax reduction is not the best decision to deal with gray economy because neither too high nor too low taxes are effective. He said that balance should be found.
Problems with budget revenue from unpaid tax collection feature among the most serious consequences of gray economic activity, former finance minister Milen Velchev said. Another negative effect was crime hindering investment in the country, Velchev said.
He said that gray economy could be restricted through administrative control and economic incentives introduction.
