Article of LFMI
People in the Baltic Countries See the Same Causes of Smuggling – High Taxes and Low Income
Lithuanians, Latvians and Estonians think that the primary cause of smuggling is taxes higher than the living standards in these countries, which generates differences in prices and gives rise to incentives to consume, or trade in, illegal goods. People of the three Baltic countries estimate that smuggling has been on the rise during the past three years. The largest portion of respondents who neither fully tolerate nor strictly condemn smuggling is in Lithuania. “Wages in envelopes” are the most spread in Latvia.
Such results were revealed by a first representative sociological survey initiated by the Lithuanian Free Market Institute and carried out by market and public research company “Spinter tyrimai” which polled 3056 permanent residents in Lithuania, Latvia and Estonia. In Latvia fieldwork was carried out by SIA Data Serviss, in Estonia – by Turu-uuringute AS.