Over the past decade, Serbia has significantly reduced its shadow economy, lowering it from 29.1% to 21.1% of GDP, thanks to a series of key reforms spearheaded by the Serbian government and the National Alliance for Local Economic Development (NALED).
These efforts include the introduction of eFiscalization, eInvoices, and eInspections, as well as reforms in tax systems and freelance work, aimed at fostering greater transparency. Notably, the government’s investment in digitalization has been a cornerstone of these reforms, enhancing tax compliance and streamlining administrative processes.
Finance Minister Siniša Mali, highlighting Serbia’s first-ever investment credit rating, emphasized the government’s commitment to further easing the business environment by introducing eExcise systems and new IT solutions for the Tax Administration. Mali noted that these reforms not only simplify processes for businesses but also generate significant revenue for the state. Executive Director of NALED, Violeta Jovanović, praised the collaboration between the government and NALED in addressing the shadow economy, underlining the role of initiatives like the “Uzmi račun i pobedi” campaign, which promotes cashless payments as a crucial tool in curbing tax evasion.
International backing for these efforts has been strong, with Simon Christian Blum of the German development agency GIZ confirming that cashless transactions play a vital role in reducing the shadow economy. Recent analysis suggests that aligning Serbia with EU standards in cashless payments could reduce the shadow economy by up to 2.4% of GDP, potentially adding around €500 million in additional tax revenue each year.
Photo: NALED