During an ongoing discussion, various stakeholders including the State Audit Office, policymakers, and representatives from business organizations and academia will explore what changes need to be made to the government's approach to limit the shadow economy in Latvia. The conversation comes on the heels of a report released earlier this year by the State Audit Office, which evaluated the effectiveness of the current governmental measures aimed at curbing the shadow economy.

The audit revealed that, despite the government's long-standing focus on the shadow economy, the strategies being implemented are proving insufficient. Instead of addressing the root causes of the shadow economy, the existing measures have primarily focused on increasing control and oversight requirements. This reactive approach has led to criticisms that without a more proactive strategy to address underlying issues, the effectiveness of these efforts is likely to remain limited.

Researchers contributing to the discussion emphasize that taxation remains a key driver of the shadow economy. Although some work has been done to develop policy guidelines regarding taxation, there remains a lack of a clear vision from the government regarding its future plan for tax development. The outcome of this discussion is expected to inform future directives and strategies designed to tackle the challenges posed by the shadow economy effectively.