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 ?
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.