Shadow Economy Percentage Rising
The Institute of Economic Research says the shadow economy is growing.
Three years ago, the black market only accounted for seven percent but today it is up to nine, according to a fresh study. It is the highest it has been since 2004, when it stood at 10 percent.
Insitute director Marje Josing says it is an expected development and symptom of recent recession
"People pay less taxes and try to get grants for which they are not actually entitled. It's a common trend everywhere in the world."
The most under-the-table payments take place to builders - 37 percent of respondents had bought repair or construction services from a person who in the buyer's estimation would not pay taxes on the income.
Leasing a dwelling came in second.
The number of recipients of unreported remuneration for work was also up - in both last year and 2009, five percent of respondents received such wages regularly, but the number of "occasional" recipients jumped from four to eight percent..
The number of people who support the practice increased from one percent to two percent and opponents decreased from 78 percent to 72 percent. Attitudes toward tax evasion saw a similar trend.
When company owners were asked whether the shadow economy jeopardizes Estonia's development, Estonia's figures were closer to Russia than to Finland. Estonia's index was 3.9 compared to 3 in Russia and 2.9 in Greece while the Nordics had numbers in the 6-7 range.
Last year, the illegal alcohol market also increased - last year nine percent of respondents bought illegal alcohol compared to seven percent in 2009
More bootleg than before was bought from registered places of business and less from private homes or "on the street."
Kristopher Rikken