Central Market Operating on the Black Market
Freedom of establishment taken too literally at Keskturg
( Photo: Postimees/Scanpix )
An inspection carried out at Keskturg, an outdoor market in downtown Tallinn, found that around half of the merchants were evading taxes, according to the Tax and Customs Board.
The inspectors checked for under-the-table earnings, envelope pay, and illegal alcohol and tobacco products, a press release from the tax agency said.
Around half of the 222 vendors were working under the table and many hadn't registered their business activity. The tax agency's audits director, Kaido Lemendik, said other legitimate small businesses are being damaged through unfair competition.
“The farmer who pays his taxes stand no chance in selling products for the same price as the dishonest merchant," said Lemendik.