Bulgarian "Gray Market" Worth Over BGN 12.4 B in 5 Years

Business | February 20, 2014, Thursday // 14:42| Views: | Comments: 0
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Bulgaria: Bulgarian "Gray Market" Worth Over BGN 12.4 B in 5 Years File photo

The gray economy turnover in Bulgaria was BGN 12.4 B between 2008 and 2012.

Informal activity has the largest share in construction, trade, and tourism, a survey by the Bulgarian Industrial Association (BIA) has shown.

Bulgarian GDP registered a 29% growth between 2007 and 2012 (i.e. BGN 65.2 B to BGN 77.5 B), the increase in tax collection was only 11% during the same period.

Minimum salary has gone 61% up and the average about 80%, but a collapse in taxation is evident from the statistics.

The informal economy augments with 3.4% each year according to the executive chair of the BIA Bozhidar Danev, quoted by CROSS News Agency.

Danev added that the income of the gray sector is mainly spent on influence peddling and giving leverage in a non-transparent way.

A huge benefit from the gray-sector companies comes from outsourcing activities, which have been more and more entrusted to them by "formal economy" companies over the past few years.

Danev reminded that a few years ago, software against tax evasion had been installed by the Bulgarian National Revenue Agency, but has displayed dubious results.

Another survey, cited by Investor.bg website, shows that undeclared employment in Bulgaria is the highest among European countries - somewhere between 22 and 30%.

According to data by the European Commission, gray economy constituted 31.9% of Bulgarian GDP as of 2012.

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