This Policy Brief discusses the importance of implementing a wealth tax as a solution to overcome asymmetric tax inequality in Indonesia, the Philippines and Vietnam. Income and wealth inequality is increasing in these countries, with most wealth concentrated in the top income groups. Wealth taxes can help equalize income and complement existing types of taxes, so there is a need for a wealth tax policy that is fairer and more equitable.
It contains recommendations for concrete steps that can be taken by the government and the House of Representatives of Southeast Asian countries. These steps include increasing tax rates on passive sources of income, imposing taxes on sources of passive or non-taxable income such as inheritance, and formulating fairer wealth tax policies. By implementing appropriate wealth tax policies, it is hoped that it can reduce tax inequality and increase tax revenues.
This Policy Brief also highlights the importance of gender equality in the tax system. Tax policies that only focus on increasing indirect taxes such as VAT, instead of increasing direct taxes (income tax), have the potential to be more burdensome on women. Therefore, a gender-based tax policy is needed that can provide a stimulus for tax deductions or tax reductions for women.
Read the full Policy Brief volume 41 entitled "Wealth Tax to Overcome Asymmetric Distribution of the Tax Burden" below:
