Celios: 11 Alternative Taxes with the Potential to Increase State Revenue by Rp524 T

The Center for Economic and Law Studies (Celios) estimates that if the government implements a number of progressive taxes, total state revenue could reach Rp524 trillion per year.

This figure is based on 10 tax instruments and two policy instruments proposed by Celios. These range from wealth tax and carbon tax to a policy recommendation to reduce the value-added tax (VAT) rate from 11% to 8%.

"If state revenue is maximized, we can not only curb unemployment, but we can transform it into a job creation engine," Celios wrote in its report.

Based on its instruments, Celios provides alternatives for reviewing poorly targeted tax incentives. The prospect of revenue from this is the largest, reaching Rp137.4 trillion per year.

In line with this, Celios proposes imposing a wealth tax on the 50 richest people in Indonesia, potentially reaching Rp81.6 trillion per year.

Wealth tax is a type of progressive tax levied on an individual's total net worth, including assets such as land, stocks, vehicles, artwork, and bank deposits.

"The function of wealth tax is not merely as a source of state revenue, but also a manifestation of social justice that limits the dominance of a select few in the economic field," Celios wrote in its report titled *With Respect, State Officials: Don't Collect Taxes Like Hunting in a Zoo*.

The following is a complete list of the 11 progressive taxes that have the potential to increase state revenue, based on Celios' research:

1. Review of poorly targeted tax incentives: Rp137.4 trillion per year

2. Wealth tax on the 50 richest individuals: Rp81.6 trillion

3. Carbon tax: Rp76.4 trillion

4. Coal production tax: Rp66.5 trillion

5. Windfall profit tax in the extractive sector: Rp50 trillion

6. Tax on biodiversity loss: Rp48.6 trillion

7. Digital tax: Rp29.5 trillion

8. Increased inheritance tax rates: Rp20 trillion

9. Tax on ownership of a third home: Rp4.7 trillion

10. Capital gains tax: Rp7 trillion

11. Excise tax on sugary drinks in packaging: Rp3.9 trillion.