Informal sector

Every year, the gray economy in Bulgaria generates about 30 billion BGn, accounting for 30% of the total economy. The share of Bulgarians who work undeclared work is 16% or 500,000 people. The data are from the World Bank and the International Labour Organisation and were announced by the President of CITUB trade union, Plamen Dimitrov.

Bulgaria ranks among the top 9 EU members for which industry is extemely important for the economic development. This data is supported by the constantly increasing level of Bulgarian exports in the last few years, according to Eurostat.

The shadow economy costs the Turkish economy 60 billion Turkish Liras ($17 billion) annually, Labor Minister Mehmet Müezzinoğlu has said, adding that new measures would be taken to slash it.  

The share of the shadow economy in the whole economy is 32 percent, he said. 

The European Commission has established yet again an extreme imbalance in Bulgaria's economy. The country remains among the 12 EU member-states which are subject to special monitoring.

A lack of trust in institutions and unfair taxation systems in Southeast Europe have contributed to the widespread problem of the "shadow" economy and undeclared work, a recent survey by the Sofia-Based Center for the Study of Democracy, CSD, for the Southeast Europe Leadership for Development and Integrity, SELDI, has concluded.

BELGRADE - Member of Serbia's Fiscal Council Nikola Altiparmakov said in Belgrade Tuesday that to efficiently fight the informal economy, it was vital to strengthen the Tax Administration, and also expressed disagreement with some parts of the national strategy to combat the grey economy.
    

Albanian police on Thursday said they had arrested two hairdressers for working in a side-street shop in Tirana that was not registered with the tax authorities.

According to police, Taulant Hasanaj, 29, was arrested for resisting a tax inspector while Indrit Lluka, 33, was arrested for "conducting an economic activity... unregistered in the tax office."

France and Germany have demanded that Bulgaria's General Labor Inspectorate apply tighter control on Bulgarian employees sent on business trips by their companies, a minister has warned.

The EBRD's business environment in the transition region survey, BEEPS, interviewed some 15,000 business leaders in 24 countries during 2013 shows that in Albania, electricity shortages, unfair competition from the informal sector and corruption are seen as the main obstacles to business.

Bulgaria's Economy Ministry mulls increasing the lower threshold for VAT registration from BGN 50 000 to BGN 200 000 in a bid to curb the informal sector, according to Economy Minister Bozhidar Lukarski.