Survey of BICA: The grey sector in the perfumery and cosmetics industry reaches 25%

The grey sector in the perfumery and cosmetics industry is between 11% and 25%, according to 42.2% of the polled businessmen in a survey of the Bulgarian Industrial Capital Association (BICA). However, 47.2% of the employers refused to assess the share of grey practices. Another 19.5% of the respondents believe that the grey sector in the industry is one-third of it. According to the entrepreneurs, grey practices are common in small-sized cosmetic firms, especially those located in premises intended for garages. The use of workers without labour contracts is typical for them, as well as the production of fake products and violation of tax laws. As a result, products harmful to consumers’ health are made there.

Data from the survey shows that new grey practices are added to the traditional ones. The most serious injuries are caused by the attempts of some small-sized firms to avoid the mandatory registration under the RICH standard in order to avoid the fees for the registration of products. Another serious problem for the employers is the hiring of seasonal workers, for example for picking rose blossom.

The employers surveyed point to several main reasons for operation in the informal sector, e.g. payment of lower taxes than the actually due ones (67.4%), lower labour costs (44.2%), free cash flows that are used for other purposes (23.3%), more freedom in the choice of suppliers and customers (23.3%) and higher profitability (20.9%).

Прочети цялата новина

Свързани новини: