Construction without legal contract
As we have already noted in the article on 20% VAT excluding, today almost the entire market of private home renovation, as well as the most part of home new construction is in shadow market; i.e. we build and renovate our houses, substantially increasing the volume of the shadow economy of our state. The problem is that legitimate contracts with licensed construction companies increase the cost of works by nearly 50%, which compels us to find a way to conduct works in shadow, and, moreover, with absolute impunity, despite the severity of "dormant" low... Shadow home construction and renovation activity is also lucrative to the people with illegal income, which is highly undesirable for them to show shadow incomes in legal contracts.
As we see, shadow construction first of all is beneficial for the customer, because it reduces the cost of the work, but disadvantageous to the State, because it loses money in the form of taxes. But as building portal, we particularly wish to acknowledge the inability of small and medium construction companies legally prosper in such circumstances, when they are in unequal competition with shadow workforce. The State should seriously think over that problem and solve it as soon as possible, but through lowering tax burden solely for that market, as no other measures will give positive results. That is very important to realize! But until that happy day, we all, willy-nilly become criminals, as we seriously violate the low of our Republic.
Please, all interested persons, leave your comments, both from Armenia and around the world, as we are sure that even in well-developed countries a problem like this partly exists.
As we see, shadow construction first of all is beneficial for the customer, because it reduces the cost of the work, but disadvantageous to the State, because it loses money in the form of taxes. But as building portal, we particularly wish to acknowledge the inability of small and medium construction companies legally prosper in such circumstances, when they are in unequal competition with shadow workforce. The State should seriously think over that problem and solve it as soon as possible, but through lowering tax burden solely for that market, as no other measures will give positive results. That is very important to realize! But until that happy day, we all, willy-nilly become criminals, as we seriously violate the low of our Republic.
Please, all interested persons, leave your comments, both from Armenia and around the world, as we are sure that even in well-developed countries a problem like this partly exists.
