A forum was held in Skopje on the topic: Shadow economy elimination mechanisms, implementation and expected results organized by the Association of Chambers of Commerce of Macedonia, with the purpose that the representatives of the business sector express their problems with the informal sector, as well as jointly voicing their opinions for regulatory change and change in the implementation of appropriate policies by the relevant institutions through the established Platform for Public-Private Dialogue.
Ljubomir Dimovski, the director of the USAID Project, Partnership for better business regulation stressed that we have felt the negative effects of the shadow economy for a few decades, but probably all companies, institutions, government representatives, would agree that we together must find a solution and stimulus how informal action will be channeled into the formal economy.
“This process needs to be gradual and to result in the transfer of as many subjects as possible in the formal part of the economy. Preventive functioning of the inspection bodies as educators and assistants will contribute to the change of the current perception that the grey zone is a safe zone for working. Despite direct measures we have to think about raising the public awareness about the consequences of informal operation. Indiscriminate law enforcement, education of the entrepreneurs, regulation of “wild” outlets for sale, are ideas that need to get concrete outlines. It is necessary to systematically reduce the pressure on companies that work within regulation, because otherwise we risk mismatch or closure of entities due to the fight against unfair competition and huge difficulties to survive in the market”, said Dimovski.
The president of the Union of Chambers of Commerce, Danela Arsovska in her addressing stressed that the shadow economy undermines the competitiveness of companies and the integrity of our entire tax system.
“With open discussion on this major problem common for all the sectors of the economy, we are looking for concrete steps by the institutions as the bearers of the mechanisms for dealing with the shadow economy. Proposed measures are implementation of the Law on Prohibition and Prevention of Unregistered Activities that would regulate the operation in the grey zone, as well as joint action at the border crossing for prevention of smuggling. To start a voluntary first-stage registration procedure for unregistered entities and if they refuse to register to apply repressive measures by imposing significant fines, as long as this unfair competition is not prevented, we risk not only that registered ones will also move into the gray area but also to discourage and entrepreneurs to not register and all those who have been encouraged to become self-employed.”-stated Arsovska while adding that the only with a functional mechanism can we deal with the shadow economy, which does not contribute to the budget and breaks the equality bases on which the market system is based on.
Zoran Sapurikj, the minister responsible for the regulation to improve the investment climate for domestic enterprises stated that following the most recent research findings and experiences, punitive measures are not the only instrument to reduce the informal economy.
“Despite this, the commitments should also be aimed at systematic measures of tax policy, deregulation, measures to increase tax morale, measure to reduce corruption and tax administration reform. Hence, all efforts are directed towards sector or joint action in terms of regulatory and business environment, strengthening of labor market institutions, increasing inspection of the flow of the informal economy and raising the general public awareness with the business community about the importance and role of the process to formalize informal activities,“said Sapuric.
The USAID Project Partnership for better business regulation is implemented by “EPI CENTAR International” in partnership with the Association of Chambers of Commerce of Macedonia, Chamber of Commerce of Macedonia, Chamber of Commerce of Information and Communication Technologies (MASIT), Chamber of Commerce of Northwest Macedonia.