The biggest problem regarding grey economy in Serbia is that many businesses see paying taxes and other levies as an option, rather than as an obligation, says Aleksandar Grunauer of the German agency for international cooperation GIZ.
Speaking at a Konrad Adenauer/Business Info Group conference on the economic impact of the grey economy and tax evasion, Grunauer said that regulations need to be implemented, not merely interpreted.
When a tax system is complex and involves many exceptions and options to pay or not pay taxes, businesspeople are also more prepared to evade taxes, and when a tax system is simple and transparent and there are no exceptions, the preparedness to pay taxes is on the rise, Grunauer said.
That is one of the main problems in Serbia, he said, noting that many service outlets in downtown Belgrade do not issue receipts.
When I see people get away with that, I wonder why we pay any taxes at all because people see that as an option, rather than as an obligation, he said.
Source; SerbGov
