Poland’s government is effectively cracking down on tax evasion, according to a study.

Kamil Wyszkowski, head of the United Nations Global Compact Network Poland, speaks during a conference at the Finance Ministry in Warsaw on Friday. Photo: PAP/Jacek Turczyk

Over the past year, the tax-evading, unregistered segment of Poland’s economy has shrunk by 1 percent, the United Nations Global Compact Network Poland said in a report released on Friday.

Thanks to reducing the "shadow economy," the government has boosted its annual revenue by about PLN 20 billion (EUR 4.76 billion, USD 5.58 billion), the study said.

The off-the-books segment of the economy represents 11 percent of Poland’s gross domestic product, according to the United Nations Global Compact Network, which is a UN initiative that aims to encourage businesses worldwide to adopt sustainable and socially responsible policies.

The head of Poland’s National Revenue Administration, Marian Banaś, said that measures to combat tax evasion and fraud are not only about increasing government revenue, but also about supporting honest entrepreneurs. He added that the aim of such efforts is to create an equal playing field for all and step up the country’s development.

Kamil Wyszkowski, head of the United Nations Global Compact Network Poland, said that the fight against the shadow economy in Poland was covering a growing number of business sectors.

These include not only industries such as tobacco, fuel, gambling and spirits, but also food service, mining, energy and waste management, Wyszkowski said.

He also said that a national receipt lottery has contributed to reducing tax evasion in Poland. Thanks to this initiative, many consumers started collecting purchase receipts, thus preventing dishonest businesspeople from hiding their income, according to Wyszkowski.

(gs/pk)

Source: IAR