Is used to be common for store owner to put the cash directly in their pocket. Which is not possible with electronic payement. Meaning that you add 20% VAT to the price, an when transforming the money in a salary need to pay for unemployement/health/retirement insurance to finally get a taxable income.
But I am curious on how much “not being able to easily fraud” pushed shop owner to increase the prices ? Any study on it ?
Acamon@lemmy.world 5 months ago
I guess it’d be interesting if you could measure the drop in undeclared income by seeing places that increased their turnover as electronic payments became common. Although because covid was a big driver for that in many places, and disrupted all the expectations for business, demand, costs etc it might be hard to pick apart.
frazorth@feddit.uk 5 months ago
It’s also been shown that people are more likely to impulse purchase when not using cash, and moreso with contactless via a phone or watch.
Trying to tie a decline in cash purchases with tax evasion is impossible.