Aksi! for gender, social and ecological justice conducted a study on ‘Gender and Economic Inequality in Indonesia from the Perspective of Taxation and Illicit Financial Flow’ by looking at the extent to which fiscal and tax contribute to gender and economic inequality in Indonesia and the fulfilments of women’s rights.
This study explains the problem causes of the lack of state revenue from taxes, especially from companies, how the state revenue modus and distribution, and its impact on women. This study shows that the small amount of state revenue is caused by many sources of income lost due to corruption, money laundering, bribery, tax avoidance and evasion, smuggling, various types of abuse of power by officials, and tax engineering. The KPK findings and the views from many experts regarding cases of tax evasion and even the relations between taxes and corruption and money laundering have often been disclosed to the public. However, the parties with the authority do not take legal action and improve the tax management and institutional.
Small state revenues are never enough to cover state spending. The government creates new debts to cover the budget deficit. The budget intended for the community, especially women and other marginalized groups, is eroded by various unproductive state spending. Meanwhile, programs aimed at them, such as education, health and social protection programs, are unable to lift women out of poverty. This is can be seen with the poverty rate which has never decreased significantly, the unemployment rate remains high, and maternal and child health is deteriorating.