The campaign which aims to raise awareness on gray economy in North Macedonia has been launched on Wednesday in Skopje. The campaign is implemented by the United Nations Development Program (UNDP) in cooperation with the Ministry of Finance.
The campaign should seek to persuade those who are involved in the gray economy to formalize their economic activities and those who are thinking of engaging in the gray economy to instead opt for the official and legal route of opening and operating a business. The campaign should further seek to dissuade people from interacting with gray economy entities as consumers.
The gray economy is one third of the country’s economy and has several negative consequences. It affects the private sector and creates unfair competition, and on the other hand, public revenues are reduced, which means less budget funds for providing public goods.
According to Finance Minister Fatmir Besimi, it is not easy to measure the gray economy, and the fight against the informal economy is an ongoing process. Action plan to curb the gray economy was worked on as of last year, he said at today’s launch of campaign.
“The transition from informal to formal sector would reduce unfair competition, create conditions for equal competition between businesses, strengthen tax morale and lead to an increase in gross domestic product. The action plan sets the practical actions and mechanisms across five priority areas: Improving the process of measuring, monitoring and detecting the informal economy; effective inspection services; Improved business environment for establishment, growth and development of the companies; awareness rising and improving tax morale; Addressing informal economy in e-commerce,” Besimi noted.
UNDP says that coordinated activities are needed and that every stakeholder in society needs to contribute. “This is a complex problem that cannot be solved by just one group,” UNDP Deputy Permanent Representative in the country Sanja Bojanic said. The government, Bojanic noted, should provide an equal playing field, where rules will be consistently enforced, resources will be spent in an accountable and effective manner, and the private sector should respect the rules and treat employees responsibly, consumers and society. Citizens, on the other hand, need to be actively involved and support businesses that operate responsibly, she added.
Source: MIA
