Gray Economy Booming in Bulgaria - Poll

Gray Economy Booming in Bulgaria - Poll

The gray economy in Bulgaria in 2010 had a 40% share of the entire business sector and keeps growing, according to the Association of Industrial Capital (AIC).

AIC presented Tuesday the results of a nation-wide poll among 3 500 employed people, ages 15 to 85.

Employees say this share is nearly 48%, while the average Bulgarian puts the percentage points at 58.

Paying cash under the table, not offering full benefits, tax evasion and unfair competition are the most common practices of the gray economy, according to the poll.

The respondents believe the main damages to the honest business are losses from profits, market positions and staff.

The city of Montana is the leader in gray economy with over 62%, followed by Burgas and Yambol - with 61% each. In the capital Sofia the percentage is 41 while it is the lowest in the city of Kardzhali - 34%.

52% of Bulgarians, who work in the gray economy, have made this choice over low income and bad economic situation in Bulgaria while two thirds of the shady business gives bureaucracy es excuse.

Experts from AIC recommend the cabinet eliminates immediately its debt to the business and applying the idea of the European Commission for unified tax base in the European Union, which will lower corporate tax in Bulgaria, as ways to counter the gray economy.

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