Downsizing underground economy and fighting salaries ‘in envelope’ were discussed by Prime Minister Pavel Filip with representatives of PricewaterhouseCoopers (PwC), which implements the Good Governance Fund financed by the UK.
The Premier said the amplitude of the phenomenon implies identifying viable solutions to convince companies to work legally and to improve tax levying. The Economic Council under the Prime Minister has analyzed the problem and has come up with proposals.
Pavel Filip showed interest for a study on improving tax levying by reducing underground economy carried out by the PwC.
The experts pointed out Romania’s experience in this regard, which had kicked off a similar reform in 2013 and got very good results: despite decreasing the taxes, the incomes into the state budget had grown. Moldova shows interest to launch a similar project.
The Premier deems one must focus on: identifying solutions to decrease informal employment and salaries ‘in envelope,’ reducing cash transactions, tax liberalization, etc.