Dynamics of Tax Ratios in ASEAN: Case Studies in Indonesia, Thailand, and Vietnam

Tax ratios remain a critical measure of fiscal capacity and a tool for financing development while reducing inequality across ASEAN economies. Among the three countries analyzed, Vietnam achieved stronger tax ratio performance through administrative modernization and tax base expansion, while Thailand improved revenue collection through personal income tax reforms and tax system digitalization. Indonesia has made progress in taxpayer compliance through the Harmonized Tax Law and digital tax administration reforms, but continues to face challenges from a narrow tax base and heavy reliance on indirect taxes. Strengthening compliance, expanding tax bases, and improving fiscal equity remain key priorities for sustainable and inclusive growth.

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