Fewer businesspeople in Lithuania think underground economy is a problem than a year ago. However, Lithuania has a far bigger black market than the Central and Eastern European average, research shows.
© Shutterstock nuotr.

The research was done by the international audit, tax and consulting company KPMG which has surveyed the heads of some biggest companies of Central and Eastern Europe.

A year ago, nine out of ten businesspeople in Lithuania said shadow economy was a problem.

Lithuania is particularly far behind Estonia: 83 percent of businesspeople in Lithuania identify shadow economy as an important problem, while in Estonia, only 34 percent. Seventy-three percent of businesspeople in Central and Eastern Europe see black markets as a problem.

The worst situation is in Romania and Bosnia and Herzegovina, where almost everyone surveyed acknowledges the problem.

In Lithuania, as well as in the entire region, the most widespread form of shadow economy was perceived to be tax evasion. While 47 percent of respondents in Lithuania identified tax evasion as the biggest problem in the shadow economy, the percentages were lower in Latvia (39 percent) and Estonia (29 percent).

Twenty-one percent of Lithuanian and 23 percent of Latvian businesspeople thought smuggling as the biggest problem, significantly more than the regional average of 11 percent. Last year, smuggling was perceived as the biggest problem by 36 percent of busnesspeople in Lithuania.

The perception of illegal employment has grown significantly among businesspeople in Lithuania, from five percent last year to 26 percent this year.

Cybersecurity expert in Vilnius: guard your cables and cords and never borrow from others

Oct. 15th, 2019, Australia’s Deakin University Prof. Matthew Warren, Deputy Director of the Centre...

Dairy producers start feeling impact of rising US export duties

Lithuanian dairy producers say they have already felt the impact of duties , rising as of Friday,...

Nauseda doesn't expect EU budget deal by end of 2019

EU member states differ too much in their positions on the bloc's next multi-annual budget to...

Dairy products subject to 25 pct US import tariff

Lithuanian cheeses, yoghurts and other dairy products are now subject to a new 25-percent import...

Nauseda: everybody thinks about plan B despite Brexit deal (1)

The European Union is weighing all options of possible action if the British parliament rejects the...