Informal economy is 30 percent, young most affected


The informal economy in Macedonia is 30 percent. Tourism, catering industry, shoe industry, the media are branches where it is most prevalent. The most affected are young and we are the leading country in the region in which 45 percent of young people are working in the informal economy. It encompasses all those unregistered activities, thus avoiding paying taxes and contributions and has a negative impact on all spheres, on unregistered workers and on the budget.

These data were presented at the round table “Tax policy, informal economy and corruption in the Western Balkans”.

– With the action plan and with the active measures of the Government to reduce the unemployment rate, the percentage of informal economy decreased from 43 percent to 30 percent. The most affected are young and therefore it is important to educate themselves to say “no” to work on the black market – said Biljana Chklamovska, who conducted the survey “Informal economy”.

Regarding tax and budget policy of EU and Western Balkans countries, the report of EU expert Martin Hucbaut reads that in all countries in this region, as well as in Macedonia, most of the taxation is done by indirect way such as VAT. He recommended increasing direct taxation.

– Regarding the taxation of labor income tax with a flat rate is not fair, because it violates the basic principle that “the broadest shoulders should bear the greatest burden.” This income should be taxed according to a progressive scale. In France, Germany and Belgium, the progressive tax is 6 percent, 12 percent, 21 percent. It is not possible for a person who earns a lot and a person who earns less to pay the same – pointed out Hucbaut.

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