To reduce the shadow economy, the Ministry of Finance of Latvia proposes to limit cash transactions, and in some areas actually prohibit them.
According to the representative of the Ministry of Finance Alexis Jarockis, in 2018, to limit the shadow economy more actively involved private sector partners, e.g. construction companies, catering companies. In the result of joint work submitted specific proposals.
In 2019 in Latvia it is planned to introduce the expanded system of electronic registration of working time in construction, to continue the work on the eradication of the shadow economy in construction, security firms, catering and hospitality industry.
The threshold for the use of cash for taxpayers, self-employed, and individuals who do not conduct economic activity, will be reduced from 7200 to 3,000 euros.
It is also planned to establish a ban on the use of cash in real estate transactions and to set limits on the use of cash when buying vehicles.