Informality in Brazil collects the equivalent of 18,4% of national GDP
Source: Administrators - João Pessoa / PB - ADMINISTRATION AND BUSINESS - 28/07/2010
Writing Administrators
High costs, exaggerated bureaucracy, these are some factors pointed out by small traders and micro companies to not regularize the situation of their enterprise and make it formal.
In this perspective, the reduction of tax collection by the government due to informal companies prevents new investments and improvements in several areas from being made.
A study carried out by the Getúlio Vargas Foundation (FGV), in partnership with Etco (Brazilian Institute of Competition Ethics), revealed that informal and illegal activities, called underground economy, totaled R $ 578 billion in 2009.
The value represents 18,4% of the country's GDP (Gross Domestic Product). The analyzed segments comprise activities ranging from small informal businesses to the work of street vendors, who survive largely due to the sale of pirated products and drug trafficking.