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 ?
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.
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.
