Seven in ten Romanians believe tax money is used in an unjustified way, and that sums saved by fighting fiscal evasion should be spend on education, healthcare or road infrastructure, according to a Mastercard survey titled “Perceptions on the Shadow Economy in Romania.”

At the same time, eight out of 10 Romanians think they can fight the shadow economy by making electronic payments. The survey showed four out five respondents would like to pay by card more often as a solution to the shadow economy.

Half of those surveyed believed retailers should be compelled to have POS. Moreover, eight out of 10 Romanians thought the shadow economy can be fought by asking for a receipt.

In Romania, the shadow economy is mainly associated with employment without a work contract, with not declaring all transactions made or of parts of them in order to avoid paying taxes but also with not declaring revenues, with smuggling and fiscal evasion, the study found. Of those surveyed, 66% were aware of the existence of the shadow economy. The awareness increases with age, and while one in three young Romanians aged 15 to 24 did not hear of the shadow economy, nine out of 10 Romanians aged 55 to 64 knew about it.

Most Romanians (84%) think the state can’t provide them with the quality public services they deserve because of the unreported economy. Nine out of ten respondents think the underground economy is an obstacle in the economic growth in the country.

A total of 92% of Romanians think that public authorities need to lead the efforts to fight the shadow economy. Furthermore, eight out ten Romanians are ready to support the actions of the authorities in fighting the underground economy. On the other hand, 42% of those surveyed think regular people don’t have any influence on the shadow economy, while 40% believe the opposite.

Even though 89% of Romanians know it is illegal not to pay taxes or not to declare revenues, one in two respondents think avoiding paying taxes is justified because they are too high.

A total of 95% of respondents are aware that legally they need to receive a receipt, and nine out of ten believe they need to ask for proof of payment at the end of the transaction. The study also shows that 82% of respondents think they should notify the authorities when they do not receive proof of payment.

For seven out of ten Romanians, it is important if the retailers issue or not a receipt. But, when thinking of the most recent ten purchases they did, only 11% of respondents took a receipt issued by a retailer.

The study was carried out in Romania and nine other countries in Eastern Europe, and had 806 respondents, aged 15 to 64. The research took place in February of this year and was coordinated by Ipsos.

editor@romania-insider.com