This book is a humble attempt to review the major taxes in Indonesia, pointing out major problems which need to be addressed to make the tax system efficient and meet the goals of fiscal policy. In Chapter one, we have reproduced the publication: Indonesian Pocket Tax Book, 1902 by Drs Hadi Sutanto and Rekan, published by PricewaterhouseCoopers. We acknowledge with thanks permission from the authors and publishers to reproduce this highly educational and updated publication. On the basis of this tax review, we have examined the tax system, as a whole from the points of view of various principles of taxation. Based on this analysis, we have built a case for comprehensive tax reforms in chapter two. In Chapter three, we have analyzed problems in the income tax and pointed out need for enlarging tax base through appropriate policies. Similarly, in Chapter four we have examined the Value Added Tax with a view to make it more revenue productive and efficient. In Appendix one, we have described the Value Added Tax in Canada, which is generally hailed in the literature as the model for federal structures like Indonesia.
