bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 05.12.2016 | Name days: Sabīne, Sarma, Klaudijs

Highest bribery level among Baltic States – in Lithuania

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RULast year, the level of grey economy in Latvia had declined slightly in comparison with the year before. Estonia and Lithuania, on the other hand, had experienced an increase of grey economy, as concluded in a study published by the Stockholm School of Economics in Riga on 12 May.

The proportion of grey economy from Latvia’s GDP was 21.3% in 2015 (15% in Lithuania and 14.9% in Estonia). Over the course of the year, Latvia’s volume of grey economy has declined by 2.2% of GDP. Nevertheless, the proportion of grey economy in Latvia remains higher than that of Lithuania and Estonia.

‘Although the main reason for the decline of Latvia’s grey economy was the reduction of unaccounted income of businesses and the volume of envelope wages, these indexes remain very high,’ – admits the author of the study, SSE Riga’s associated professor Dr. Arnis Sauka. The highest grey economy level is noted in Riga and Kurzeme.

The biggest portion of grey economy in Latvia is made up of tax avoidance, reaching 45% of Latvia’s total grey economy level. In addition, the level of tax avoidance in Latvia is higher than that of neighbouring countries (19.9% in Latvia, 10.5% in Lithuania and 7.5% in Estonia). In addition, results of the study show that unregistered companies form 5-7% of all companies in Latvia.

The second largest portion of Latvia’s grey economy consists of so-called envelope wages. It is worth mentioning, however, that the proportion of envelope wages in Latvia has been declining since 2010. This tendency continued in 2015. Envelope wages are a serious problem in Estonia, where they form 60% of the total grey economy volume.

The highest bribery level among Baltic States is found in Lithuania, where an increase in bribery was noted in general business (from 10.2% to 12.7% of income) and state procurements (from 10.9% to 11.5% of the state procured order’s total value) in 2015.

Construction industry is at risk of bribery the most in Latvia – 40% of activities of this industry are in the grey area.

According to data of the study, small companies generally have a higher risk of working in the grey area than larger companies. Nevertheless, differences in size of businesses involved in illegal activities are not particularly notable – even some of the larger companies contribute to the grey economy.

Similar to previous years, Latvia featured the highest level of residents’ dissatisfaction with the established tax policy among the three Baltic States. Companies dissatisfied the most with the government’s tax policy are more prone to getting involved in grey economy. Companies satisfied with rules and regulations are less likely to engage in shady business practices.

Authors of the study suggest providing a more stable tax policy, establish more justified tax rates and provide better transparency for the use of taxes. Potential involvement in grey economy activities can also be reduced by increasing the possibility of the crime being discovered. The study also concludes that ethnic background also affects the level of grey economy. This is because minority groups do not feel too involved in decision-making processes in the country. Authors of the study also believe social cohesion and matters of integration of minorities can also help reduce grey economy.

Ref: 102.109.109.7852


Leave a reply

Lithuanians warned with TV ads to avoid being lured into espionage

In Lithuanian TV, informative adverts are being broadcast encouraging the population to be wary of kind strangers and call a hotline to check on them as attempts to recruit spies have been uncovered.

Investors: there are less and less reasons to invest in Latvia every year

In spite of efforts by policy-makers to sort out the business environment and make it more favourable, there have no serious changes in the last twelve months, and Latvia’s overall attractiveness for investors has not improved.

Industrial production output in Latvia up 6.7%

Compared to October 2015, industrial production output increased by 6.7 % in October 2016. Production output rise in manufacturing comprised 7.0 %, in mining and quarrying 9.8 %, and in electricity and gas supply 5.1 %.

EUIPO estimates the money Europe loses due to counterfeit goods and piracy

Counterfeit goods on the market cause nine industries to lose more than EUR 48 billion every year, according to estimates calculated in studies performed by European Union Intellectual Property Office.

Police shoot-out ends tragically in Ukraine

Two Ukrainian police units on December 4 mistook each other for criminals and engaged in a shoot-out, which ended with five policemen killed.

Money provided for deputy quotas is wasted; no one wants to take responsibility

The so-called deputy quotas first appeared at the end of the 90s – Prime Minister Vilis Kristopans’ minority government managed to secure support from the opposition for the state budget with LVL 2 million. Since then the opportunity to divide money for different books, films, municipal museums and roads has been a traditional part of the budget creation process.

Eight million euros wasted in e-projects in state administration

EUR 7.9 million have been recognized as wasted funding in e-projects organized by different ministries, as reported by De Facto programme of LTV. This means this money will have to be covered by Latvian taxpayers instead of structural funds.

Survey: Estonia leads Baltics in drug use

The consumption of most popular illegal psychoactive substances in Estonia is higher than in Latvia and Lithuania, found researchers, who compiled the European Drug Report 2016.

Meteorologists expect unstable weather conditions in Latvia this week

The beginning of the week for Latvia will pass with varied weather. On Monday, 5 December, west and south-west winds will carry warmer masses of air to Latvia. Because of that, maximum air temperature will reach +2° C… +7° C. Snow and wet snow will be gradually replaced with rain.

Week in Lithuania. Lithuania set to step up defence ties with the United States

Lithuania is set to step up defence ties with the United States by signing the first bilateral cooperation agreement.

Economic Diary of Latvia. To tempt Brexit defectors

Latvia had the slowest growth of GDP among Baltic States in Q3 2016, according to the latest data from the Central Statistical Bureau of Latvia. Nevertheless, this does not seem to prevent Prime Minister Maris Kucinskis from hoping for GDP growth of 4-5% a year in the future.

Following an investment of 3.3 million, K-rauta becomes K Senukai

On Friday, 2 December, Baltics’ largest construction, repair and household goods store network Kesko Senukai opened its first new concept shopping centre K Senukai in Riga, Lucavsalas Street. This venture cost the company EUR 3.3 million.

Saeima deputies allocated record-large amount of money for «friend projects»

The money of Latvia’s budget for next year allocated not with the intention to solve problems in priority industries but rather to satisfy desires of certain politicians and their lobby groups has reached an astonishing new peak – EUR 27.9 million, according to estimates, as reported by Ir.

Income from foreign travellers in Latvia declines

In Q3 2016, Latvia’s current account had a surplus of EUR 93.4 million or 1.5% of GDP, notes Bank of Latvia economist Linda Vecgaile.

airBaltic to sell Boeing 737 after replacing them with Bombardier CS300

Latvian national airBaltic airline intends to gradually update its fleet with Bombardier CS300 aircraft. The airline plans to sell its owned Boeing 737, says Martin Gauss, Chief Executive Officer of airBaltic.

Numbers of active voters in Latvia continue to decline before next year’s elections

47% of Latvian vote-ready citizens plan to take part in next year’s municipal elections, according to results of a survey carried out by SKDS following a request from the Central Election Commission in November.

BATL: transit industry’s potential is enormous, but not used to its fullest

Baltic Association – Transport and Logistics is satisfied that real and constructive work has commenced in cooperation with LDz Logistics and Transport and Communications Institute on Latvia’s transport and logistics, including the development of a strategy for the transit industry.

Ominous milestone: one-millionth Lithuanian to leave soon

The statisticians claim that, every day, 120 Lithuanians hop onto Scandinavia and Western Europe-bound planes in search of a better life. This month, Lithuania is likely to reach an ominous and heart-wrenching milestone with the country‘s émigré number expected to go over one million. To calm down the naysayers, the estimate is unofficial.

Snowy weekends expected in Latvia

The first days of December will go by under influence from a cyclone. Because of that, many regions of the country are expected to experience snowfall. Rain is only expected along the coast. Ice is expected to form as a result and visibility will likely reduce because of snowfall.

Three European cities plan to ban diesel cars

Looking for ways to improve their quality of air, the mayors of Madrid, Paris and Athens have on December 1 expressed readiness to introduce bans on cars and trucks with diesel engines by 2025.

French President Hollande refuses to run for re-election

France’s President François Hollande has unexpectedly announced that he would not run for re-election to the post.

Several hundred Estonian reserve soldiers summoned to unexpected drills

The cabinet of ministers of Estonia ordered on December 1 to hold snap military drills to test the ability of reserve troops to reach combat readiness in 24 hours.

Freight turnover and freight traffic declines at ports

Compared to Q3 2015, the volume of freights carried by land and pipeline transport has decreased by 1.8 million tonnes or 5.5 % in Q3 2016. The most notable drop in the volume of freights carried was recorded in rail transport – of 2.3 million tonnes or 18.9 %.

EU 2017 budget to provide the most support to youth and growth initiatives

In the next year’s budget, members of the European Parliament have secured larger support to unemployed youngsters and Erasmus+, as well as initiatives for support of small and medium-sized businesses, transport infrastructure projects and research. Commitment appropriations for 2017 total EUR 157.8578 billion, and payment appropriations EUR 134.49 billion.

Vejonis picks Kalnins as candidate for NAF commander

President of Latvia Raimonds Vejonis has decided to propose National Armed Forces Joint Staff Chief Leonids Kalnins for the post of commander of Latvia’s National Armed Forces. Kalnins was previously proposed by Defence Minister Raimonds Bergmanis, according to information from LETA.