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Jakarta Post

Time to reform tax injustice favoring the rich

  • Glenn Polii
    Glenn Polii

    Staff member at the Directorate General of Taxation at the Finance Ministry

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Jakarta   /   Mon, July 3, 2017   /  08:33 am
Time to reform tax injustice favoring the rich Two women hold up newly released banknotes at a Bank Indonesia representative office in Riau Islands, Batam, on Dec. 19. (Antara/M N Kanwa)

When we talk of policies for improving social justice, what we usually mean are things such as building hospitals, roads, schools and other basic infrastructure, as well as cash transfers to the poorest segments of the population. While all of the above are necessary, we must not forget that these policies, which mainly target the poor, are not complete. To address the growing cancer of inequality more directly, swiftly and decisively, the government must complement its use of transfer systems with appropriate policies in the tax system. To reduce inequality is to limit the degree of wealth concentration. The World Bank has estimated that in Indonesia, 1 percent of the population owns 50 percent of the wealth of the country. But how does wealth get concentrated in the first place and grow to this massive and hideous level? Ruling out illegal practices, there are two steps to wealth...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.