Inequitable Taxation in Indonesia: Baseline Mapping of Policy Areas and Options in an Effort to Tackle the Issue

Ah Maftuchan
Working paper Perkumpulan PRAKARSA • 2014 Indonesia

Unduh teks lengkap
(English, 12 pages)


Income inequality is now on the political agenda due to the widening gap between the rich and poor. There are a number of factors that are causing the inequitable distribution of wealth. For example, public policies such as taxation, labor, education, health that are inconsistent with the principles of justice and equity are also contributing to widening economic and non-economic disparities. Another causal factor is an unfair market mechanism. Taxes as a fiscal policy can function as an instrument for fair and equitable economic distribution. However, in practice, taxes are a source or cause of economic inequality. Tax rates that put the wealthy and super-wealthy at a more advantaged position are proof of this paradoxical effect.


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