Bulgaria is one of the European countries having the highest taxation levels, chair of the Bulgarian Industrial Association (BIA) Bozhidar Danev said.
Danev took part in a press conference on a campaign targeting grey economy in Bulgaria.
A number of people get involved in shady economic practices because of the high taxation, Danev said as quoted by Focus news agency.
Other factors that aid the grey economy are lenient regulations, inefficient punishments and the lack of business and civic culture in Bulgaria, Danev said.
Price lowering concerning real estate deals, billing violations and contracts featuring lower values are among the main sources of funding for the grey economic sector, Danev said. State budget loses significant amounts because of these practices.
Fund diversion leads to financial shortages which in turn decrease competitiveness. Such developments result in the migration of qualified workers and loss of foreign investors, Danev said.
