Program launched to counter grey economy in Serbia

Too funny. It's actually the government, and its cronies, that are the biggest contributors to the grey economy in Serbia. The rest is small stuff, like fruit vendors at the farmers markets. The big time crooks, that do not contribute to the State coffers, are all assisted by government officials. Nice meeting though. Who did the catering? Do they pay taxes?

What is "shag"?

"Atanasijević noted that the Serbian budget is losing around EUR 3 billion on the annual level because of grey economy and of this sum, EUR 300 million worth of losses are caused by illegal sale of shag."

There is nothing wrong per se in the grey economy - IF you can find away to "formalise" this highly efficient section of the economy. For instance why do "businesses" hire illegally ? Because the burden of tax would remove all realistic potential for the profitability of the economic production/service. More progressive taxes that are support SME enterprises with not tax breaks but genuinely progressive would suddenly remove the irrationality of non-legal employment. Suddenly a large proportion who were considered unemployed may register as employed. This can also assist in removing the unsavoury characters that abound as "employers" in the grey economy.

Serbia needs to completely overhaul it's concept of health, pension and statutory funds both recording and collection - they are archaic, inefficient and over complicated. I was hoping the new economy and finance ministers would have been more progressive with their proposals thus far - this not "EU" for the sake of a goal is what must be done in the interest of all in Serbia including the southern province.

Gray economy!?!
Little businesses, bakeries, restaurants, small builders, machine shops; flower, phone-cards, newspaper, water, cigarettes, food vendors all over Belgrade and Serbia are the most efficient segment of Serbia's GNP.
This is cost-effective, labor-saving industry serving superlatively, a pauperized nation, internally exploited by corrupt politicians, externally
harmed by Western military, political, economic attacks and dishonest
propaganda machine.
Bottoms-up to Serbian industrious, efficient and ingenious small business men and women!
Fair Man

@ Paul
"Shag" is "duvan" or loose tobacco.

On the subject, my opinion is that I believe that poorer countries need a grey economy so that many small business owners, like fruit vendors, car wash operators, builders, plumbers and the likes of those, are able to survive. The government needs to collect taxes from those businesses that can afford to pay but don't because there is insufficient control and too many loopholes. You can go after all the 'small' guys but that doesn't fix the problem.

There is no decent life and decent work for workers and their families (social insurance, freedom to organise, health and safety, wages...) in grey economy. Thus, grey economy is not generating (decent) jobs, just privileges to corrupted entrepreneurs and politicians, especially in big projects conducted by public and private companies (MNCs) by trying to keep clean hands by hiring bogus self-employed and dozens of so called sub-contractors. So, the investors and main contractors will at the end have to pay the bill and not the exploited workers and tax payers. Jobs for All, Justice for All – Unions Make it Possible !

Gray economy!?!
Little businesses, bakeries, restaurants, small builders, machine shops; flower, phone-cards, newspaper, water, cigarettes, food vendors all over Belgrade and Serbia are the most efficient segment of Serbia's GNP.
This is cost-effective, labor-saving industry serving superlatively, a pauperized nation, internally exploited by corrupt politicians, externally
harmed by Western military, political, economic attacks and dishonest
propaganda machine.
Bottoms-up to Serbian industrious, efficient and ingenious small business men and women!
Fair Man

What is "shag"?

"Atanasijević noted that the Serbian budget is losing around EUR 3 billion on the annual level because of grey economy and of this sum, EUR 300 million worth of losses are caused by illegal sale of shag."

Too funny. It's actually the government, and its cronies, that are the biggest contributors to the grey economy in Serbia. The rest is small stuff, like fruit vendors at the farmers markets. The big time crooks, that do not contribute to the State coffers, are all assisted by government officials. Nice meeting though. Who did the catering? Do they pay taxes?

@ Paul
"Shag" is "duvan" or loose tobacco.

On the subject, my opinion is that I believe that poorer countries need a grey economy so that many small business owners, like fruit vendors, car wash operators, builders, plumbers and the likes of those, are able to survive. The government needs to collect taxes from those businesses that can afford to pay but don't because there is insufficient control and too many loopholes. You can go after all the 'small' guys but that doesn't fix the problem.

There is nothing wrong per se in the grey economy - IF you can find away to "formalise" this highly efficient section of the economy. For instance why do "businesses" hire illegally ? Because the burden of tax would remove all realistic potential for the profitability of the economic production/service. More progressive taxes that are support SME enterprises with not tax breaks but genuinely progressive would suddenly remove the irrationality of non-legal employment. Suddenly a large proportion who were considered unemployed may register as employed. This can also assist in removing the unsavoury characters that abound as "employers" in the grey economy.

Serbia needs to completely overhaul it's concept of health, pension and statutory funds both recording and collection - they are archaic, inefficient and over complicated. I was hoping the new economy and finance ministers would have been more progressive with their proposals thus far - this not "EU" for the sake of a goal is what must be done in the interest of all in Serbia including the southern province.

There is no decent life and decent work for workers and their families (social insurance, freedom to organise, health and safety, wages...) in grey economy. Thus, grey economy is not generating (decent) jobs, just privileges to corrupted entrepreneurs and politicians, especially in big projects conducted by public and private companies (MNCs) by trying to keep clean hands by hiring bogus self-employed and dozens of so called sub-contractors. So, the investors and main contractors will at the end have to pay the bill and not the exploited workers and tax payers. Jobs for All, Justice for All – Unions Make it Possible !