So far, it has been officially speculated that this dangerous phenomenon ranges from 20 to 25 percent of the GDP, and recently the Minister of Finance, Darko Radunovic, said that it is over 30 percent - and a day or two earlier, Tax Administration representatives said that it is between 30 and 40 percent. The state announced the bill late last year, formed a Commission for Combating the Grey Economy of cigarette smuggling, alcohol and other excise goods, unreported workers whose estimates are between 25 and 30 thousand, the VAT evasion ranging from 120 to 150 million euros annually, 300 million euros lost in tourism, illegal businesses and services, announced electronic fiscalisation, from which they expect a lot of assistance.
The Employer's Union said that no problem, not even this one, can be solved quickly and warned that the fight against the informal economy is largely related to the punishment of registered businessmen who, due to the difficult economic situation, were in many cases forced to "slip" to the grey zone in order to keep the business going.
The head of the Sector for International Cooperation and Economy of the Employer's Union, Mirza Mulešković, says that almost nothing is done to counteract unregistered economic activities, which employers and the state bear the damage from.
"We hope the Government will begin to address the main problems in the struggle against the informal economy, primarily to create a business environment that will be favorable for the economy, including law compliance, regulatory compliance to the real economy and its applicability, awareness of growth, formal employment as a basic goal, and the uncontrolled and efficient implementation of the law, with the effective work of the inspection services and the equal treatment of all actors, then reducing labor costs, and only then strengthening the criminal policy. That is the only way to act and can deliver results," Mulešković says.
Creating favorable conditions for employers, he adds, will increase the number of companies - especially those who have moved from the informal sector, which will increase the number of employees and public revenues.
In Montenegro, business alliances have pointed out that long ago everything rolled over the back of those who legally did business, but believe that such a serious problem cannot be solved overnight.
"The grey zone is also present in the most developed countries. However, the percentage there is significantly lower. The higher the percentage of the grey economy, the greater the problem for regular business and in general for the economy. People who regularly perform and regularly fulfill their obligations towards the state are in an unequal position compared to those who operate in the grey zone. Especiallybecausee the total tax burden on their businesses is not small. It turns out that everything is rolling over the backs of those who are carrying out the business regularly," said the MBA and emphasized that due to this the state and society are at loss.
The President of the Parliamentary Committee on Economy Predrag Sekulić announced that the parliament would support any legislative proposal that is going in the direction of more effective combating of the gray market, but that more effective law enforcement actions are needed.
"The grey economy exists in all countries, but if that percentage is high then the state has a problem. It is not only the fact that the state budget from which public administration, health, education, and social needs of citizens are financed is weaker, but there is the introduction of insecurity and unfair competition in the economic environment. In such a system, those who engage in the grey economy steal from the state, and who work legally feel deceived because they are paying taxes and are not protected from the unfair competition," says Sekulić, who as a solution sees the creation of a legal model that enables stronger market control and the stricter application of these regulations.
He warns that part of the work to combat the grey market should be done by municipalities, which until now was not the case.
Economic analyst Predrag Drecun said he was not surprised that the grey economy is up to 40 percent.
"I have previously estimated that the grey economy, which has been a modus vivendi since the UN sanctions in 1992, is that high. Unfortunately, the grey market still today is a way of life and behavior because a significant number of workers have been left out of business and managed it somehow in this market. In that market there is the answer of how to survive from low or no payrolls and pensions," says Drecun, and warns that a sudden shutdown of this social valve could be dangerous.
He believes that the state needs to have traffic data in real-time, unlike the current system, and does not see the problem in the new financial system if it will not slow down the business. Commenting on the announcement of a business to boycott the VAT payment, it says it looks more like a political story than a serious business response.
The Union of Independent Trade Unions said that by tolerating the grey economy, social peace is being acquired and a false reality is created.
To get in the way of the grey economy, it is necessary to improve the functioning of the fiscal system.
"This is possible through stimulation when recruiting new workers, adjusting time limits for tax obligations, introducing tax incentives in the first few years of business, improving fiscal systems, stimulating electronic payments, more efficient seasonal workers, reporting, and introducing numerous business facilitation," suggested the trade unions and stressed that it is important to have trained and adequately stimulated inspectors at all levels.
Text by Pobjeda, on October 8th 2018, read more at CdM
