Simplified taxation system can help combat shadow economy, BNP Paribas tells ZATCA conference

RIYADH: Combating the shadow economy is key to meeting rising spending demands, according to the International Head of Economics at BNP Paribas Bank Marcelo Carvalho.

Speaking during a panel discussion on the first day of the Zakat, Customs, and Tax conference in Riyadh, Carvalho noted that addressing the shadow economy can help boost tax revenues.

When taxes are high and the system is complex, there is a perceived unfairness in the tax system and the shadow economy tends to occur, he simplified.