Informal economy is damaging Kosovo’s economy

Informal economy is damaging Kosovo’s economy
Domestic and international reports say that informal economy in Kosovo accounts for more than 30% of GDP or 1.8 billion euros a year.

According to the head of the American Chamber of Commerce in Kosovo, this informal economy has damaged the state budget and market competition.

“Informal economy causes direct damages to competition and regular businesses who pay their taxes to the state. Another effect relates to direct foreign investments, because serious investors will not come to a country where informal economy accounts for 30% of GDP”, Zeka says.

Senior officials also consider informal economy to be high. They say that they have taken concrete measures to fight it.

Deputy head of the Tax Directorate, Hamdi Hoxha says that this institution has achieved progress in the fight against informal economy.

“This phenomenon exists in all countries, but we are fighting it in order to minimize it as much as we can”, Hoxha said. /balkaneu.com/

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