Research Article
The Effectiveness of Local Tax Law in Increasing Regency/City Regional Tax Revenue in Central Java Province
@INPROCEEDINGS{10.4108/eai.27-7-2021.2316895, author={Maryono Maryono and Nuraini Nuraini and Agus Murdiyanto}, title={The Effectiveness of Local Tax Law in Increasing Regency/City Regional Tax Revenue in Central Java Province}, proceedings={Proceedings of the 4th International Conference on Economics, Business and Economic Education Science, ICE-BEES 2021, 27-28 July 2021, Semarang, Indonesia}, publisher={EAI}, proceedings_a={ICE-BEES}, year={2022}, month={3}, keywords={local tax laws local taxes regional independence}, doi={10.4108/eai.27-7-2021.2316895} }- Maryono Maryono
Nuraini Nuraini
Agus Murdiyanto
Year: 2022
The Effectiveness of Local Tax Law in Increasing Regency/City Regional Tax Revenue in Central Java Province
ICE-BEES
EAI
DOI: 10.4108/eai.27-7-2021.2316895
Abstract
To improve services to the community and regional independence, a policy that can encourage increased regional revenues is needed. Law Number 28 of 2009 concerning regional taxes and regional levies contains new regional tax objects which are expected to increase local government revenues. This study aims to evaluate whether local tax revenues originating from new tax objects provide a significant contribution to overall local tax revenues. This research was conducted in the province of Central Java which consists of 35 autonomous regions, namely 29 regencies and 6 cities. The secondary data used are sourced from the Central Statistical Agency and the Directorate General of Balance of the Ministry of Finance for three years from 2017 to 2019. This study succeeded in finding: 1. On average in three years the land and building tax was 38,506,719,679 rupiah and its contribution to revenue local tax of 27.07 percent; 2. Revenues from the acquisition of land and building rights on average in three years amounted to 34,070,867,725 rupiah and its contribution to local taxes was 20.05 percent; 3. The average groundwater tax revenue in three years is 1,213,370,136 rupiah and contributes to local taxes 0.81 percent; 4. The total regional revenue from new tax objects on average in three years is 73,800,284,775 rupiah and contributes to regional tax revenue of 47.94 percent.