The Economy of Greece
Tax Evasion and the Informal Economy
Widespread tax evasion and a large informal sector weakened public finances, and reforms sought to improve collection.
A structural weakness.
Scale
Estimates show a large share of income and VAT went uncollected.
Reasons
Weak enforcement, complex rules and distrust of the state.
Reforms
Electronic invoicing, card payments and a new tax authority increased compliance.
Progress
Collection improved in the 2020s, though gaps remain.
A card incentive
People were encouraged to pay by card so transactions are recorded.
Blaming only individuals
Institutions shape behaviour.
Key takeaways
- Evasion was widespread.
- Weak enforcement contributed.
- Digital tools help.
- Progress has occurred.
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