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)