More than 30% of companies surveyed by Ipsos Strategic Marketing recognize that a portion of their transactions is not executed in a legitimate manner. This primarily refers to various purchases and corporate travel expenses.
“60% of citizens believe that the state is very determined to fight the informal economy. Confidence in government is very high “, says Predrag Kurcubic, Director of Ipsos Strategic Marketing. “The minimum number of irregularities is found in the agricultural and industrial sector, i.e. only 10%”.
A third of the companies that provide services operate illegally, while half of the companies involved in the commerce operates permanently in the “shadow area”. “The irregularities in the commerce are more frequent than in the sale of VAT-free goods. Furthermore, employees who work in this area are usually unregistered, they don’t have social security and health insurance, and don’t pay their taxes”, Nenad Jelic, the Commercial Director of the DIS supermarket chain says.
State bodies are not coordinated in their work, and there is no a uniformed, balanced system of sanctions. This is another reason why companies are allowed to operate illegitimately.
“Because of the bureaucracy in Serbia, many small business owners engage in illegitimate activities in the first year of their business”, NALED (National Alliance for Local Economic Development) warns. “The constant changes and increases in various contributions and taxes lead to legal insecurity which allows companies to operate illegally”, Jelena Bojovic from NALED explains.
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