shadow economy

The Lithuanian state loses around a billion euros in VAT revenue every year due to the shadow economy, despite active efforts to combat the phenomenon, Deputy Auditor General Zivile Simonaityte said on Friday.

With Lithuanian authorities considering converging the taxation of self-employed and salaried income, some self-employed people may begin to look for a job and others may migrate into the shadow economy, the business daily Verslo Zinios reported on Thursday.

The scope of shadow economy has visibly decreased over the past decade in Lithuania, Finance Minister Vilius Sapoka says as it has become fashionable to pay taxes.

Lithuanian Police Commissioner General Linas Pernavas sees the frequent use of cash as a key factor in the shadow economy and proposes to consider imposing restrictions on marketplaces and construction, transport and car trade businesses, which he says are the sectors where grey activities are most ...