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
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    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
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      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.