Feiferis: many Latvian residents survive only due to shadow economy :: The Baltic Course | Baltic States news & analytics

Feiferis: many Latvian residents survive only due to shadow economy :: The Baltic Course | Baltic States news & analytics

The shadow economy helps many Latvian residents survive, the former president of Latvian Mortgage and Land Bank (Latvijas Hipoteku un zemes banka), Inesis Feiferis, told the business information portal Nozare.lv.

Inesis Feiferis.

Feiferis believes that the government must be very cautious when combating shadow economy. If it will be eradicated completely, some people will starve, said Feiferis.

According to Feiferis the large companies that are avoiding taxes should be held accountable first, however, the authorities are afraid to deal with them due to the risk of being assaulted, since the stakes are high, writes LETA.

If an elderly woman sells apples from her garden on the street, then she must be allowed to continue doing so. But if large companies hire financial experts and lawyers to find ways avoiding taxes, then they must be punished, emphasized Feiferis.

Feiferis believes that the shadow economy cannot be eradicated by oppressive means only, a consensus between the businessmen and politicians is needed, and a national unity government would provide basis for it.

However, Feiferis admits that the idea of a national unity government is a distant dream. People have voted for other parties as well and therefore they must be included in the government.