FICIL: Shadow economy in Latvia persists due to political decisions and illegal construction in Pierīga
Evita Goša, head of the FICIL Shadow Economy Working Group, states that the shadow economy is not decreasing because pre-election measures removed key cash transaction restrictions and private houses in Pierīga are often built undeclared.
Evita Goša, head of the Shadow Economy Working Group at the Foreign Investors Council in Latvia (FICIL), said in the program "Kāpēc" that it is no surprise that the shadow economy is not declining. She pointed out that in the pre-election atmosphere, the most serious restrictions on cash transactions were removed from the anti-shadow economy plan.
Goša also highlighted that in the Pierīga region, many private houses are being built in the "shadows" – meaning undeclared, off-the-books construction. This practice significantly contributes to the persistence of the shadow economy. She emphasized that fighting the shadow economy requires not only well-designed plans but also public awareness that the Nordic welfare level cannot be achieved without honest tax payment.
