It stems from unaccounted raw materials – wood products. Cash is then generated by selling building materials and all types of fuel (pellets, briquettes, firewood) to the private sector. We have observed that, in our company, for example, the private sector does not buy firewood because they would have to pay an additional 12% VAT (there is a reduced VAT rate for heating purposes). A similar situation is seen with the sale of timber for construction purposes – representatives of the private sector are encouraged by small businesses to pay in cash. A great many small players are involved in selling products to the private sector, thereby acquiring cash that later turns into envelope wages.

Banks are also at fault by not taking a stand against the circulation of cash. For example, when taking out a bank loan, an individual has the option to withdraw money from an ATM to then pay for building materials. Thus, the money is not transferred, and often payment in cash is made without a receipt. If banks were to look more closely at the granting of loans and how they are invested, the volume of unofficial payments would decrease, as it would be impossible to build a house without accounting for expenses.

Unfortunately, the current energy support provided to residents without requiring receipts also promotes the shadow economy on a national scale. Next year, if similar support is planned, the presentation of receipts must definitely be required when applying for it.