Gus Dur supports progressive tax
Gus Dur supports progressive tax
WONOSOBO, Central Java (JP): Noted Moslem scholar Abdurrahman
Wahid, popularly known as Gus Dur, said yesterday that he
supported the idea of introducing more progressive tax rates,
whereby the wealthy contribute more to state coffers than the
less well to do.
The chairman of the Nahdlatul Ulama, a large rural-based
Moslem organization, said the time has come for the nation to
limit the amount of wealth one is allowed accumulate.
But, besides anti-monopoly and anti-trust laws, both of which
have been widely proposed by others, Abdurrahman also proposed
the introduction of more progressive tax rates.
"The way it is at the moment, the wealthy in Indonesia have it
all their way. They're rich and they can pass all their wealth to
their children with little taxes," he said during a lecture at
Al-Asy'ariyah, a Moslem boarding school.
He pointed out that Britain imposes up to 85 percent tax rates
on inheritance.
However, before Indonesia moves to impose higher tax rates,
Abdurrahman said, the country should first resolve its tax
administration.
"I really support the idea of progressive tax rates in
Indonesia. But because of the lack of transparency at the way the
tax money is spent and the controversy it has often created, we
should first improve the administration," he said.
He added that if the money is spent in the right way, people
would not object to paying higher rates of taxes. "They would
consider it fair to pay more taxes as long as they know that the
money is spent wisely and for the benefit of society.
A better administration would also encourage people to pay
their taxes and this would make it easier for the government to
pay the tax rates in the future, he added.
On the absence of an anti-trust law in Indonesia, Abdurrahman
said he found it strange that even the United States, which is
supposed to be the most capitalist of capitalist countries, has
already introduced the legislation to prevent companies from
controlling the market.
"I think it's a matter of political will," he quipped.
(har/emb)