REVENUE, EQUITY, AND DEVELOPMENT - TAXATION CHALLENGES IN EMERGING ECONOMIES IN BOTH INDONESIA AND AFGHANISTAN
Main Article Content
Abstract
The taxation system is a crucial fundamental issue for some nations and yet developing countries in the development of their economic system of the nation and it is progress. Developing nations are facing some taxation system challenges to implement for the effective economic system to have development progress in all sectors of the country, especially for the people. The aim is to understand Both Indonesia and Afghanistan's taxation system challenges and deeply understand the progress, revenue, and equity and prosper the economy through these important aspects. Drawing data from distinct sources from International organizations, and analyzing government publications, and academic literature, the paper discusses the comprehensive taxation system and deep information about the taxation system and its aspects in both countries Afghanistan and Indonesia. Importantly, comparing the circumstances of the taxation system in both nations is the key to knowing better and making an effective policy and strategy to implement to eliminate the challenges and make it better to have an effective impact on the economy. Interestingly, Indonesia is a nation that implemented effective strategies to have better revenue and and notable taxation system that continues to grapple with issues of equity and uneven distribution of the tax burden. Afghanistan faces different challenges in the taxation system and it is establishment due to a lack of security instability and political issues. The comparison between the two nations' economic systems and it is policies regarding taxation system and their implementation and the importance of addressing the challenges in taxation system and it is an effect on the economic system in developing countries and designing the implementing the policy and strategy for the obstacles and challenges that both governments are facing.
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
Kementerian Keuangan Republik Indonesia. (2021). *Fiscal & Economic Updates December 2021*. Retrieved from [https://fiskal.kemenkeu.go.id/files/red/file/1641438110_r5_fpa_red_december.pdf](https://fiskal.kemenkeu.go.id/files/red/file/1641438110_r5_fpa_red_december.pdf)
Cabinet Secretariat of the Republic of Indonesia. (2022). *Indonesia’s Tax Revenue Grows by 58.1 Percent as of August 2022*. Retrieved from [https://setkab.go.id/en/indonesias-tax-revenue-grows-by-58-1-percent-as-of-august-2022/](https://setkab.go.id/en/indonesias-tax-revenue-grows-by-58-1-percent-as-of-august-2022/)
Cabinet Secretariat of the Republic of Indonesia. (2023). *Sri Mulyani: Indonesian Tax Revenues Reaches Rp1,109.1 T*. Retrieved from [https://setkab.go.id/en/sri-mulyani-indonesian-tax-revenues-reaches-rp1-1091-t/](https://setkab.go.id/en/sri-mulyani-indonesian-tax-revenues-reaches-rp1-1091-t/)
Directorate General of Taxes. (2023). *Indonesia’s 2024 Tax Revenue Target*. Retrieved from [https://www.pajak.go.id/index.php/id/node/103484](https://www.pajak.go.id/index.php/id/node/103484)
Directorate General of Taxes. (2024). *VAT Rate Increase to 12 Percent: Indonesia’s Challenges and Opportunities*. Retrieved from [https://pajak.go.id/en/artikel/vat-rate-increase-12-percent-indonesia-challenges-and-opportunities](https://pajak.go.id/en/artikel/vat-rate-increase-12-percent-indonesia-challenges-and-opportunities)
East Asia Forum. (2024). *How Indonesia’s New President Aims to Boost Nationwide Tax Revenue*. Retrieved from [https://eastasiaforum.org/2024/04/03/how-indonesias-new-president-aims-to-boost-nationwide-tax-revenue/](https://eastasiaforum.org/2024/04/03/how-indonesias-new-president-aims-to-boost-nationwide-tax-revenue/)
Expat Life Indonesia. (2023). *Indonesia Adopts Measures to Achieve Tax Goal*. Retrieved from [https://expatlifeindonesia.com/indonesia-adopts-measures-to-achieve-tax-goal/](https://expatlifeindonesia.com/indonesia-adopts-measures-to-achieve-tax-goal/)
TOLO News. (2024). *Tax Revenue Decline in Afghanistan*. Retrieved from [https://tolonews.com](https://tolonews.com)
Anggoro Putro, C., Rizal, H., & Mayangsari, S. (2024). *Progressive Income Tax System and Digital Economy in Indonesia*. Retrieved from [https://e-journal.uac.ac.id/index.php/iijse/article/download/4468/1547/](https://e-journal.uac.ac.id/index.php/iijse/article/download/4468/1547/)
Rifaldo, A. (2023). *Strategies for Expanding Tax Base in Indonesia*. Directorate General of Taxes. Retrieved from [https://www.pajak.go.id/index.php/id/node/103484](https://www.pajak.go.id/index.php/id/node/103484)
Fathoni, M. I. (2024). *Increasing VAT Rate to 12%: Indonesia’s Challenges and Opportunities*. Directorate General of Taxes. Retrieved from [https://pajak.go.id/en/artikel/vat-rate-increase-12-percent-indonesia-challenges-and-opportunities](https://pajak.go.id/en/artikel/vat-rate-increase-12-percent-indonesia-challenges-and-opportunities)
Finance Ministry Targets Core Tax System Implementation Starting July 2024. Tempo. Co. https://en.tempo.co/read/1789056/finance-ministry-targets-core-tax-system-implementation-starting-july-2024
Jackson, A. (2022). How the Taliban's more effective and 'fairer' tax system helped it win control of Afghanistan. The Conversation.
Retrievedfromhttps://theconversation.com/how-the-talibans-more-effective-and-fairer-tax-system-helped-it-win-control-of-afghanistan-184018
Wall Street Journal. (2021, September 7). Taliban Prove to Be Formidable Tax Collectors, Putting Squeeze on Afghans. Retrieved from https://www.wsj.com/articles/taliban-prove-to-be-formidable-tax-collectors-putting-squeeze-on-afghans-e45e5a24
Hakimi, Hameed. "Taliban Afghanistan's double whammy: Afghans face a failing economy and high taxation." Qantara.de, 15 Aug. 2023, https://qantara.de/en/article/taliban-afghanistans-double-whammy-afghans-face-failing-economy-and-high-taxation.
Ashley Jackson, The Conversation. (2022, April 18). How the Taliban's more effective and 'fairer' tax system helped it win control of Afghanistan. https://theconversation.com/how-the-talibans-more-effective-and-fairer-tax-system-helped-it-win-control-of-afghanistan-184018
Ahmadi, M., & Najafizada, H. (2021). Taxation and Foreign Direct Investment in Afghanistan. Journal of Asian Economics, 72,101260. https://doi.org/10.1016/j.asieco.2020.101260
Tax Rates in Afghanistan – International
TradePortal."LloydsBankTrade, www.lloydsbanktrade.com/en/market-potential/afghanistan/taxes.
Harefa, T. E. (2024, June 27). Indonesia Yet to Pass Halfway Mark for Tax Revenue Target. Jakarta Globe.https://jakartaglobe.id/business/indonesia-yet-to-pass-halfway-mark-for-tax-revenue-target
Seerat, Rustam. "Analyzing the Taliban budget for 2023-24: Prioritizing military spending over citizen welfare." Zan Times, 11 May 2023, https://zantimes.com/2023/05/11/analyzing-the-taliban-budget-for-2023-24-prioritizing-military-spending-over-citizen-welfare
Alokozai, S., & Payenda, K. (2023). Analysing Taliban's Budget Expenditures and Revenues: Understanding the Regime's Policies and Priorities. PeaceRep: The Peace and Conflict Resolution Evidence Platform.https://peacerep.org/wp-content/uploads/2023/05/PeaceRep-Afghanistan-Research-Network-Reflection_04.pdf
Ehsan, Kazim. "Pay or Die: How the Taliban extorts its many taxes through violence and destruction." Kabul Now, 3 May 2023, https://kabulnow.com/2023/05/pay-or-die-how-the-taliban-extorts-its-many-taxes-through-violence-and-destruction/.
Radio Free Europe/Radio Liberty. (2022, June 16). One Certainty For Afghans: The Taliban And Taxes. https://www.rferl.org/amp/afghanistan-taliban-taxes-revenue-services/31901313.html
Ministry of Finance, Islamic Republic of Afghanistan. (2021). FY-1400 Revenue Analysis. https://mof.gov.af/sites/default/files/2021-03/FY%201400%20Revenue%20Analysis.pdf
Ghafourzay, H. (2021). Examining the Effect of Tax Understanding and Tax Awareness on Taxpayer ComplianceinKabul-Afghanistan.ResearchGate. https://www.researchgate.net/profile/Hamayoun-Ghafourzay/publication/350312848_Examining_the_Effect_of_Tax_Understanding_and_Tax_Awareness_on_Taxpayer_Compliance_in_Kabul-Afghanistan/links/6059904e299bf1736760a9bf/Examining-the-Effect-of-Tax-Understanding-and-Tax-Awareness-on-Taxpayer-Compliance-in-Kabul-Afghanistan.pdf?origin=publication_detail&_tp=eyJjb250ZXh0Ijp7ImZpcnN0UGFnZSI6Il9kaXJlY3QiLCJwYWdlIjoicHVibGljYXRpb25Eb3dubG9hZCIsInByZXZpb3VzUGFnZSI6InB1YmxpY2F0aW9uIn19
USAID. (2022). Afghanistan DomesticResource Mobilization Case Study,2003-2016 [BriefingNote].https://www.usaid.gov/sites/default/files/2022-05/Afghanistan_DRM_case_study_briefing_note_FINAL.pdf
Putro, C. A., Rizal, H., & Mayangsari, S.(2024). Fulfilling the Principles of Fairness and Equity in the Implementation of OECDPillar One (Unified Approach) in Indonesia.Indonesian Interdisciplinary Journal of Sharia Economics (IJSE), 7(1), 562-580. https://e-journal.uac.ac.id/index.php/iijse/article/download/4468/1547/
Ilhamy, A. B. (2024). How Indonesia's new president aims to boost nationwide tax revenue. East AsiaForum,3April.https://eastasiaforum.org/2024/04/03/how-indonesias-new-president-aims-to-boost-nationwide-tax-revenue/