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Bridging the gap: Gender mainstreaming in tax policy
Historically, tax policies have been crafted with a one-size-fits-all mentality, which we call gender neutral, but which inadvertently neglect the diverse economic realities faced by different genders.
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Social commerce: A batik seller photographs her products for a social media advertisement in Bengkulu city, Bengkulu, on Oct. 19, 2023. Government data shows that 30 million small and medium enterprises (SMEs), most of them run by women, are connected to digital services. (Antara/Muhammad Izfaldi)
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n the keynote speech she delivered at a gender mainstreaming seminar on Nov. 24, Finance Minister Sri Mulyani Indrawati said that in her PhD thesis in 1988, even with limited data for the Indonesian context at the time, she found that although tax policy was made gender-neutral, it impacted men and women differently because men and women are different, and these differences require different policy responses.
This is why it is important to involve gender mainstreaming in formulating public policies, including economic policies.
In the intricate tapestry of economic policy, gender mainstreaming has emerged as a crucial lens through which we can address disparities and foster inclusivity. One arena where this becomes particularly evident is tax policy. Far beyond mere fiscal strategies, tax policies wield immense influence in shaping societal structures. Examining their implications through a gender mainstreaming perspective unveils a nuanced narrative of how these policies can either perpetuate inequalities or pave the way for a more equitable society.
At its core, gender mainstreaming seeks to integrate gender consideration into every stage of policy development, implementation and evaluation. When applied to tax policies, this approach involves scrutinizing the impacts of taxation on different genders and acknowledging the unique economic roles that men and women often play.
Historically, tax policies have been crafted with a one-size-fits-all mentality, which we call gender neutral, but which inadvertently neglects the diverse economic realities faced by different genders.
Consider the often-cited gender wage gap, where women, on average, earn less than their male counterparts for the same work. A gender mainstreaming lens prompts us to question how tax policies may exacerbate this gap.
For instance, if tax brackets are not adjusted to reflect this income disparity, women may end up shouldering a disproportionate tax burden. This not only deepens economic inequalities but also contradicts the fundamental principles of fairness that tax systems should uphold.
