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Underground economy draws near 50 bln euros
No matter who and how one evaluates it, the underground economy in Romania has increased lately, especially since the onset of recession, some estimates putting it at 45-50 billion, Capital reads on Friday.According to data provided by the National Statistics Institute, the 'unobserved economy' accounted for 17-18 of the GDP over 2000-2002, dropped to some 15 percent in 2003-2004, and starting with 2005 has been growing again, up to 20 percent in 2009. According to a report of the Ministry of Finance, over 2008-2009, a great part of the non-taxed economy was represented by black market labor (almost 6 percent of the GDP), whereas VAT evasion meant some other 4-5 percent of GDP.
The results of a study conducted based on a more complex methodology, by AT Kearney in collaboration with Friederich Schneider, economy professor at Linz Univerity, reveals that the proportion of the underground economy in Romania's GDP was 35 percent at the level of 2005, ways higher than the value taken into account by the authorities.
There are politicians who maintain that the state budget could gain immense amounts, of dozens of billions of euros, if the underground economy would be brought to the surface, Agerpres reports.
'It is a wrong vision. First of all, whatever the value of the black market economy that we consider, by its lawful re-surfacing, most probably, the state could collect taxes of only about 30 percent of that amount', explained a member of the management of the National Authority for Fiscal Administration (ANAF). Namely, around 14-15 billion euros of the 45-50 billion euros presumed.
The explanation is simple: 'Part of the underground economy is represented by criminality (drug traffic, prostitution, frauds etc.) and one couldn't tax it, only try to eliminate it. Then, in no country, irrespective of the political regime, the informal economy has not been eradicated. It existed before 1989, and it exists today. What we can do is to try to reduce its dimensions', underlined the ANAF oficial.
'The phenomenon will further exist. But, given the economic situation, there are chances it would extend. Due to the crisis people are tempted by fiscal evasion and the companies to make use of the black market labor', said manager of the investment bank BAC Investment Matei Paun.