To shrink shadow economy, experts say cut taxes

  • 2012-04-11
  • By Ben Seeder
RIGA - As Latvia’s government slices state spending to bring its 2012 budget deficit down to under 3 percent of GDP - the level needed to qualify the country for entry into the euro in 2014 - experts say the plan to hit the deficit target is being threatened by “weak” attempts to fight tax dodgers.Up to 50 percent of Latvian companies avoid paying certain taxes through schemes such as “envelope pay” – where employees are paid cash and either kept off the books entirely, or with reduced “official” pay.The result is the state loses hu...
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