Importance of informal sector
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The Informal Sector is the unorganised private sector within an economy where productive activities are organised in an informal manner without any form of regulation.
It is that sector of the economy that provides an income, provides employment, contributes to GDP but fails to contribute to the revenue of government in terms of taxes.
There is high potential for revenue generation from the Informal Sector if and only if the revenue authorities on behalf of government can sensitize the citizens and ensure that taxpayer's money is put to good use.
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hiiii mate here is the answer
The informal sector plays a vital role in economic development of all the countries. Particularly, developing countries one third of national income comes from this informal sector only. The informal sector reduces the unemployment. The entrepreneurs are in this sector for their livelihood, not for making more profit.
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