German Ambassador: Shadow economy in Serbia takes up to 30% of GDP

Serbia has achieved positive economic growth in recent years with increased tax revenues, but regardless of the good results achieved, the shadow economy still remains a big problem – says the German Ambassador to Serbia, Thomas Schieb, adding that the estimates show that the shadow economy in Serbia makes up almost 30 per cent of the country’s GDP.

At the annual conference “Exit from Shadow Economy” where the new National Programme for Combatting Shadow Economy was presented, Ambassador Schieb also said that Serbia loses significant tax revenues due to the effects of the shadow economy and that the lost tax revenue could have been used for investments in education, health care and other areas for the benefit of all citizens instead.

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He also stated that Serbia and Germany have been cooperating in fighting against shadow economy for several years now, that the results have been achieved, and that the common intention is to increase the responsibility of the authorities towards citizens, but also for citizens to adhere to certain rules.

Among the successes in the fight against the shadow economy, the Ambassador listed appointment of special taxation advisers for taxation across Serbia, where tax advisors responded to more than one million requests and questions from citizens.

“Together with NALED, we have been supporting a temporary tax exemption for new companies since last October and various training sessions,” Ambassador Schieb said.

At the same conference, Serbian PM, Ana Brnabic said that the Serbian government would implement every measure and activity under its plan to combat shadow economy.

“Those measures are proof of the efforts invested by the government into fighting shadow economy as one of the priorities in creating better living and working conditions in the country,” she said at the conference.

Under that programme, 11,000 workers and 9,000 companies would switch over to doing business legally over the next two years and the turnover generated by shadow economy would be reduced by some EUR 200 million.

(Blic, 22.05.2019)

https://www.blic.rs/biznis/vesti/nemacki-ambasador-upozorava-siva-ekonomija-u-srbiji-ide-i-do-30-odsto-bdp/epgy2c1

 

 

 

This post is also available in: Italiano

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