(...) Researchers at the SSE Business Centre have also noted that "the shadow economy could be reduced in the long term with the help of transparent, fair and efficient public administration, by fostering the willingness of entrepreneurs to pay taxes. The morality of paying taxes is more significant than catching and punishing. As long as we fail to improve this aspect, it will be difficult to reduce the shadow economy".

"This is not easy to achieve, because it is a question of changing attitudes. And here, policymakers should start by setting an example, showing that the public administration itself is efficient and productive, and that we know how taxpayers' money is spent," points out Arnis Sauka, Director of the Centre for Sustainable Business. The researchers note that satisfaction with the State Revenue Service (VID) also plays a role, and this has fallen significantly.