We entered Covid-19 crisis with 20% shadow economy - Jaunzeme

  • 2020-04-21
  • LETA/TBT Staff

RIGA - Latvia entered the Covid-19 crisis with about 20 percent shadow economy, said State Revenue Service (VID) head Ieva Jaunzeme at the parliament budget and financial committee meeting today.

She said that the crisis situation and applications received for downtime benefits demonstrate that many companies have been paying unreported wages and their employees cannot hope to receive good benefits.

Jaunzeme said that Latvia entered the crisis with 20 percent shadow economy, therefore the present situation should be used to solve also problems that are related with shadow economy.

"Circulation of cash has practically stopped, cash cannot be brought in from other countries. We have a chance to do everything possible to overcome this crisis," said Jaunzeme.

She said that it is important to support companies that are biggest tax payers and the "backbone" of our ecoomy.