On March 20, the State Audit Office in Latvia will host an online discussion titled 'What and How to Change the State's Approach to Restricting the Shadow Economy?' Various stakeholders, including policymakers, representatives from business organizations, and the academic community, will gather to deliberate on effective strategies to curb the shadow economy. The event aims to generate dialogue regarding what actions should and should not be taken by the government to enhance its approach, particularly in sectors where the shadow economy is prevalent.

Earlier this year, the State Audit Office released a performance audit on the government's strategy to tackle the shadow economy. The findings revealed that despite focused governmental efforts to address this issue, the current measures are ineffective as they concentrate on penalties and oversight rather than addressing root causes. Research suggests that tax codes and administrative processes contribute significantly to the persistence of the shadow economy.

This live discussion, which will be broadcast on the State Audit Office's Facebook page and Leta.lv with sign language interpretation, will provide an opportunity for participants to propose new measures aimed at reducing the shadow economy and discuss how existing policies can be adjusted to be more impactful. This initiative underscores the importance of collaborative efforts among various sectors to bring about substantive changes in the approach to economic regulation in Latvia.