ASSESSING LOCAL TAX CONTRIBUTIONS TO LOCAL OWN REVENUE: EVIDENCE IN ONE REGION IN INDONESIA

Dendy Syaiful Akbar, Yat Rospia Brata, Elin Herlina, Benny Prawiranegara, Faizal Haris Eko Prabowo

Abstract


The purpose of this study is to analyze the size of the contribution of local taxes to the Ciamis Regency local own revenue. In this study, the formula for the ratio of local tax contribution to local own revenue was formulated. The research method used is a descriptive method with a quantitative approach. Measurement of contributions of local taxes on local own revenue is drawn from the local own revenue structure which consists of local taxes, regional levies, separated regional wealth results, and other legitimate regional income. The results of the study show that the contribution of local taxes to local own revenue is in the very low and low category, because during the 2013-2015 fiscal year the figure was below 26%, while in the 2016-2017 fiscal year it reached a number of 26% -50%. The low contribution of local taxes to local own revenue is due to restaurant taxes stipulated through regional regulation No. 5 of 2011, namely the imposition of a 10% tax on each transaction with consumers is still a lot of rejection from most restaurant managers, with the reason of fear of a decline in consumers.


Keywords


Local tax; Local own revenue; Regional autonomy; Decentralization.

Full Text:

PDF

Article Metrics

Abstract views : 798| PDF views : 0

References


Abrianty, T. (2017). Journal of Public Administration Studies Why decentralization in Indonesia is not good for reducing women fertility ? Results from National Socio-Economic Survey 2002-2014 and a case study. Journal of Public Administration Studies, 1(3): p.44–63.

Allers, M., de Haan, J., & Sterks, C. (2001). Partisan influence on the local tax burden in the Netherlands. Public Choice, 106 (3–4): p.351–363.

Alm, J., Buschman, R. D., & Sjoquist, D. L. (2011). Rethinking local government reliance on the property tax. Regional Science and Urban Economics, 41(4): p. 320–331.

Alm, J., & Leguizamon, J. S. (2018). The housing crisis, foreclosures, and local tax revenues. Regional Science and Urban Economics, 70: p.300–311.

Barkan, J. D., & Chege, M. (1989). Decentralizing the state: District focus and the politics of reallocation in Kenya. Journal of Modern African Studies, 27(3):

p. 431–453.

Branoah, B. A. (2011). Do formula-based intergovernmental transfer mechanisms eliminate politically motivated targeting? Evidence from Ghana. Journal of Development Economics, 96(2): p.380–390.

Buettner, T., & Wildasin, D. E. (2006). The dynamics of municipal fiscal adjustment. Journal of Public Economics, 90: p.1115–1132.

Brun, J.-F. & M.E. Khdari (2016). The incentive effects of conditional and unconditional transfers on local own revenue generation: Empirical evidence from Moroccan municipalities. CERDI.

Caldeira, E., & Rota-Graziosi, G. (2014). The crowding-in effect of simple unconditional central grants on local own-source revenue: The case of Benin. Journal of African Economics, 23(3): p.361-387.

Caldeira, E. (2012). Does the system of allocation of intergovernmental transfers in Senegal eliminate politically motivated targeting? Journal of African Economies, 21(2): p.167–191.

Dahlberg, M., Mork, E., Rattso, J., & Agren, H. (2008). Using a discontinuous grant rule to identify the effect of grants on local taxes and spending. Journal of Public Economics, 92: p.2320-2335.

De Mello, L. R. Jr., (2002). Public finance, government spending, and economic growth: The case of local governments in Brazil. Applied Economics 34: p.1871-1883.

Fjeldstad, O. (2001). Taxation, coercion, and donors: Local government tax enforcement in Tanzania. The Journal of Modern African Studies, 39 (2): p.289–306.

Hines, J., & Thaler, R. (1995). The flypaper effect. Journal of Economic Perspectives, 9: p.217–226.

Khemani, S. (2007). Does delegation of fiscal policy to an independent agency make a difference? Evidence from intergovernmental transfers in India. Journal of Development Economics, 82(2): p.464–484.

Kusuma, K. A., & Wirawati, P. (2013). Analisis Pengaruh Penerimaan Pajak Daerah dan Retribusi Daerah Terhadap Peningkatan PAD Sekabupaten/Kota di Provinsi Bali. E-Jurnal Akuntansi Universitas Udayana, 5(3): hal.574–585.

Landiyanto, EA. (2005). Kinerja Keuangan dan Strategi Pembangunan Kota di Era Otonomi Daerah: Studi Kasus Kota Surabaya. Cures Working Paper, No. 05/01.

Lavertu, S., & Clair, T. S. (2018). Beyond Spending Levels: Revenue Uncertainty and The Performance of Local Governments. Journal of Urban Economics: ????

Ly, T., & Paty, S. (2018). Local Taxation and Tax Base Mobility: Evidence from a Business Tax Reform in France. SSRN Electronic Journal.

Masaki, T. (2018). The impact of intergovernmental transfers on local revenue generation in Sub-Saharan Africa: Evidence from Tanzania. World Development 106: p.173–186.

Miguel, E., & Zaidi, F. (2003). Do politicians reward their supporters? Regression discontinuity evidence from Ghana. Mimeo, Berkeley: University of California.

Mulyani, H. (2016). The Relationship of Local Own Revenues and General Fund Allocation on Capital Expenditure of Local Government. Advance in Economics, Business and Management Research 15: p.163–166.

Porto, A., & Sanguinetti, P. (2001). Political determinants of intergov- ernmental grants: Evidence from Argentina. Economics and Politics 13: p.237–256.

Putri, E. N., & Fanani, Z. (2018). Strategi Mempertahankan Harta Anak Bangsa Pasca Tax Amnesty. Media Riset Akuntansi, Auditing & Informasi, 18(1): hal.101-114.

Putri, M. E., & Rahayu, S. (2015). Pengaruh Pajak Daerah Dan Retribusi Daerah Terhadap Pendapatan Asli Daerah. E-Proceeding of Management, 2(1): hal.281–288.

Richter, W. F. and D. Wellisch (1996). The provision of local public goods and factors in the presence of firm and household mobility. Journal of Public Economics 60(1): p.73–93.

Rohlin, S. M., & Thompson, J. P. (2018). Local sales taxes, employment, and tax competition. Regional Science and Urban Economics, 70(October): p.373–383.

Rosen, H. S. (2005). Public finance (7 ed.). New York: McGraw-Hill Irwin.

Rusyiana, A. (2017). Does Decentralization Good for Reducing Communal Conflict ? A multilevel Analysis of Communal Conflict at Indonesia’s Villages 2008 -2014. Journal of Public Administration Studies 1(3): p.25–43.

Sanoh, A. L. Y. (2015). Rainfall Shocks , Local Revenues , and Intergovernmental Transfer in Mali. World Development 66: p.359–370.

Sari, P., Garvera, R. R., & Sihabudin, A. A., (2018). What is the Contribution of Local Original Revenue to Regional Financial Independent?. Journal of Public Administration Studies, 3(2): p.78-81.

Skidmore, M. (1999). Tax and expenditure limitations and the fiscal relationships between state and local governments. Public Choice 99: p.77–102.

Sole´-Olle´, A. (2006). The effects of party competition on budget outcomes: Empirical evidence from local governments in Spain. Public Choice 126: p.145–176.

Sujarwoto, S. (2017). Why Decentralization Works and Does Not Works? A Systematic Literatur Review. Journal of Public Administration Studies 1(3): p.1–10.

Sunanto. (2015). Analisis Pengaruh Pajak Daerah Terhadap Pendapatan Asli Daerah (PAD) di Kabupaten Musi Banyumas. Jurnal AKuntansi Politeknik Sekayu (ACSY), II(1): hal.1–10.

Tewodaj M., Benin, S., and Cudjoe, G. (2009). Do external grants to district governments discourage own-revenue generation? (Discussion Paper 00934). Washington, DC: IFPRI.

Thompson, J., & Rohlin, S., (2012). The effect of sales taxes on employment: new evidence from cross-border panel data analysis. National Tax Journal 65 (4): p.1023–1041.

Wellisch, D. (2006). Theory of Public Finance in a Federal State. Cambridge University Press.

Wilson, J. D. (1995). Mobile Labor, Multiple Tax Instruments, and Tax Competition. Journal of Urban Economics 38 (3): p.333–356.

Wilson, J. D. (1999). Theories of Tax Competition. National Tax Journal 52(2): p. 269–304.

Wilson, J. D. and D. E. Wildasin (2004). Capital tax competition: bane or boon. Journal of public economics 88 (6): p.1065–1091

Zahari, M. (2016). Pengaruh Pajak dan Retribusi Daerah Terhadap Pendapatan Asli Daerah Kabupaten Sarolangun. Eksis 7 (2): hal.133–148.

Zhang, G. (2013). The impacts of intergovernmental transfers on local governments’ fiscal behavior in China: A cross-country analysis. Australian Journal of Public Administration 72 (3): p.264-277.

Zhuravskaya, E. V. (2000). Incentives to provide local public goods: Fiscal federalism, Russian style. Journal of Public Economics 76: p.337–368




DOI: http://dx.doi.org/10.25105/mraai.v19i1.3881

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

 Creative Commons License

Media Riset Akuntansi, Auditing & Informasi Creative Commons Attribution-NonCommercial 4.0 International License.