ZAGREB, April 25 (Hina) - Grey economy, although in decline, is still very high. To that effect, the government on Thursday established a set of measures and activities aimed at preventing it and encouraging a fair market activity.
The measures will be implemented by five task groups.
ZAGREB, April 25 (Hina) - Grey economy, although in decline, is
still very high. To that effect, the government on Thursday
established a set of measures and activities aimed at preventing it
and encouraging a fair market activity. The measures will be
implemented by five task groups. #L#
The goal is to give every craftsman, legal and physical person,
every subject dealing in economy equal conditions and the chance to
compete on a fair market, said Deputy Prime Minister Slavko Linic.
Besides penalties for transgressors, the battle against the
"unofficial" economy requires encouraging tax stimuli for those
operating regularly, said Linic.
Five task groups will be in charge of precisely determined measures
and activities - for business incurring losses, the prevention of
illegal labour, property, market and trade, and for promotion and
supervision. The groups will be headed by competent ministers,
while the government cabinet will coordinate and supervise their
work.
Also today, the government discussed two studies on grey economy,
one by the Institute for Public Finances and the Finance Ministry
and the other by the Central Bureau of Statistics and the Economy
Institute.
The studies used two different methods for estimating the grey
economy rate, but both show the rate is dropping.
According to the studies, a grey economy rate exceeding 20 percent
of 1995's Gross Domestic Product might have been exaggerated, while
the current one, around ten percent of GDP, may be underestimated.
Linic said the truth might be somewhere in between.
Linic and Finance Minister Mato Crkvenac said the data on the
declining grey economy were the result also of an increasingly
successful battle against it.
Compared to the same time in 2001, the first quarter of 2001 saw the
execution of 63 percent more tax liabilities, the launching of 69
percent more magistrate court proceedings, while revenues
increased by 138 percent, said Crkvenac.
(hina) ha sb