The relationship between taxpayer compliance and taxpayer compulsion on optimizing regional tax revenues in three cities in East Java Province

Shinta Awalia Rizky Nugrahani; Fadillah Putra; Siti Rochmah

doi:10.31941/pj.v22i1.4625

Authors

Shinta Awalia Rizky Nugrahani Universitas Brawijaya
Fadillah Putra Universitas Brawijaya
Siti Rochmah Universitas Brawijaya

DOI:

https://doi.org/10.31941/pj.v22i1.4625

Abstract

This research aims to investigate the relationship between taxpayer compliance and taxpayer compulsion to optimize local tax revenues in three cities in East Java Province, namely Madiun City, Mojokerto and Probolinggo. Collective action is used in this research as a theoretical lens that can explore in depth the actions taken by local governments in an effort to optimize tax revenues. A quantitative approach is used to test the relationship between variables through hypothesis testing based on statistical power. A total of 468 respondents was determined based on the results of the Slovin formula calculation. The findings of this research indicate that taxpayer compliance and taxpayer compulsion in the three cities in East Java Province have a positive and significant effect on the optimization of regional tax revenues. This of course has implications for local revenue (PAD) which can be optimized by regional governments through regional tax revenues. Theoretical and practical implications in this research have also been discussed comprehensively based on the research findings.

Downloads

Download data is not yet available.

References

Alfiyah, N., Subroto, B., & Ghofar, A. (2022). Is Tax Avoidance Caused by Political Connections and Executive Characteristics? Journal of Multiparadigm Accounting , 13 (1), 32-41.

Allert, V., & Reese, G. (2023). Social identity based motivation to engage in collective action supporting the redistribution of street space. Transportation research part F: traffic psychology and behavior , 94 , 9-24.

Ardiansyah, R. (2019). Taxpayer Compliance Moderates the Effect of Regional Taxes and Regional Levies on Original Regional Income. Journal of Economics , 10 (2), 31-46.

Ariyani, A., Yetti, F., & Lastiningsih, N. (2018). The Influence of Gross Regional Domestic Product (GRDP), Population and Hotel Tax on Regional Original Income (PAD). Wahana Accounting Scientific Journal , 13 (1), 58-69.

Atmojo, RW (2018). Analysis of the Effectiveness of Monetary Policy and Fiscal Policy on Indonesia's Gross Domestic Product. Economics Development Analysis Journal , 7 (2), 194-202.

Bakhtiar, M.M., Guiteras, R.P., Levinsohn, J., & Mobarak, A.M. (2023). Social and financial incentives for overcoming a collective action problem. Journal of Development Economics , 162 , 103072.

Brotodihardjo, R. Santoso (1993). Introduction to Tax Law. Bandung: PT Eresco.

Christensen, R. C. (2021). Elite professionals in transnational tax governance. Global Networks , 21 (2), 265-293.

Creswell JW, Creswell, JD (2017). Research design: qualitative, quantitative, and mixed methods approaches . Newbury Park: Sage.

Djajanti, A. (2020). Developing the voluntary taxpayer compliance: The scale of the tax authority 's power, trust and the fairness of the tax system. Indonesian Journal of Business and Entrepreneurship (IJBE) , 6 (1), 86-86.

Draper, N. R., & Smith, H. (1998). Applied regression analysis (Vol. 326). John Wiley & Sons.

Faikar, N., Suzan, L., & Asalam, AG (2021). The Influence of Taxpayer Compliance and Hotel Tax Extensification on Original Regional Income is Linked to Regent Regulation Number 79 of 2017 (Case study of the Garut Regency Regional Revenue Agency 2016-2019). eProceedings of Management , 8 (5).

Fitriyani, E., Hendri, N., & Ali, K. (2021). Analysis of Growth Rate, Effectiveness, Contribution of Hotel Tax and Restaurant Tax in Increasing Original Regional Income (PAD) in Metro Cities. Fiduciary: Journal of Finance and Banking , 4 (1).

Hamann, K. R., & Reese, G. (2020). My influence on the world (of others): Goal efficacy beliefs and affect efficacy predictions of private, public, and activist pro‐environmental behavior. Journal of Social Issues , 76 (1), 35-53.

Harjowiryono, M. (2019). Analysis of factors that influence government treasurer compliance in paying taxes. Indonesian Treasury Review: Journal of Treasury, State Finance and Public Policy , 4 (3), 195-217.

Hawkins, C. V., & Krause, R. M. (2023). Decisions institutions, policy arenas, and inter-departmental collective action around urban sustainability. Urban Governance , 3 (1), 35-44.

Inasius, F., Darijanto, G., Gani, E., & Soepriyanto, G. (2020). Tax compliance after the implementation of tax amnesty in Indonesia. SAGE Open , 10 (4), 2158244020968793.

Ispriyarso, B. (2019). The Success of the Tax Amnesty Policy in Indonesia. Administrative Law and Governance Journal , 2 (1), 47-59.

Jia, J., Ding, S., & Liu, Y. (2020). Decentralization, incentives, and local tax enforcement. Journal of urban economics , 115 , 103225.

Kamaroellah, RA (2017). Analysis of Land and Building Taxpayer Compliance Based on Realized Land and Building Tax (PBB) Revenue at the Regional Revenue Service of Pamekasan Regency. IQTISHADIA: Journal of Islamic Economics and Banking , 4 (1), 83-103.

KataData Insight. (2023). State Revenue Will Reach IDR 2,700 Trillion in 2023, the Majority from Taxes. Accessed on 6 May 2024 via [https://databoks.katadata.co.id/datapublish/2024/01/03/pendapatan-negara-tembus-rp2700-triliun-pada-2023-majoritas-dari-pajak]

Khan, MA, & Nuryanah, S. (2023). Combating tax aggressiveness: Evidence from Indonesia's tax amnesty program. Cogent Economics & Finance , 11 (2), 2229177.

Kumaratih, C., & Ispriyarso, B. (2020). The influence of the final PPH rate change policy on MSME taxpayer compliance. Journal of Indonesian Legal Development , 2 (2), 158-173.

Mangoting, Y., Iriyanto, AA, Halim, S., & Velisya. (2021). The Urgency of Tax Policy Differentiation Based on Compliance Risk. Journal of Multiparadigm Accounting , 12(2), 268-284.

Martínez‐Vázquez, J., Lago‐Peñas, S., & Sacchi, A. (2017). The impact of fiscal decentralization: A survey. Journal of Economic Surveys , 31 (4), 1095-1129.

Mookherjee, D. (2015). Political decentralization. Economics , 7 (1), 231-249.

Nurhayati, DM, & Witono, B. (2022). The Effect Of Tax Understanding, Tax Rates, Tax Incentives And Tax Sanctions On Tax Payers Compliance Of MSME In Ngawi During The Covid-19 Pandemic. Scientific Journal of Accounting and Business , 7 (1), 1-13.

Nurkhin, A., Novanty, I., Muhsin, M., & Sumiadji, S. (2018). The influence of tax understanding, tax awareness and tax amnesty toward taxpayer compliance. Journal of Finance and Banking , 22 (2), 240-255.

Olson, Mancur. (1971). The Logic of Collective Action. Cambridge, MA: Harvard University Press.

Olson, M. (2002, February). Types of goods and collective action. In Public Choice Society Annual Meeting, San Diego, CA (March) .

Opdam, P., Coninx, I., Dewulf, A., Steingröver, E., Vos, C., & van der Wal, M. (2016). Does information on landscape benefits influence collective action in landscape governance? Current Opinion in Environmental Sustainability , 18 , 107-114.

Republic of Indonesia Government Regulation Number 35 of 2023 concerning General Provisions for Regional Taxes and Regional Levies.

Portney, K. E. (2013). Taking Sustainable Cities Seriously: Economic Development, The Environment, And Quality Of Life In American Cities . Cambridge: MIT Press.

Rahmat, F. (2019). The Influence of Understanding the Tax System, Tax Sanctions and Tax Laws on Taxpayer Compliance (Study of Taxpayers in the Community in Panam, Tampan District, Pekanbaru City, Riau) (Doctoral dissertation, Sultan Syarif Kasim State Islamic University, Riau).

Rizky, D., Rasidin, R., & Sofiani, V. (2021). The Influence of Tax Bills, Services and Compliance on Original Regional Income in the Hotel and Restaurant Tax Sector. Journal of Proaction , 8 (1), 166-180.

Rulandari, N., Natision, A., Van Kommer, V., Kesmawan, AP, & Suryanih, S. (2022). Analysis of the Effectiveness of Taxpayer Data Security in Implementing Tax Obligations at the Directorate General of Taxes. Journal of Governance and Public Policy , 9 (3), 241-254.

Sakti, FT, & Fauzia, SN (2018). The Effect of Hotel Tax Supervision on Taxpayer Compliance Levels (Case Study at the Garut Regency Regional Revenue Agency). JISPO Journal of Social and Political Sciences , 8 (1), 160-173.

Salinas, P., & Sole-Olle, A. (2018). Partial fiscal decentralization reforms and educational outcomes: a difference-in-differences analysis for Spain. Journal of Urban Economics , 107 , 31-46.

Sayidah, N., & Assagaf, A. (2019). Tax amnesty from the perspective of tax officials. Cogent Business & Management , 6 (1), 1659909.

Schulte, M., Bamberg, S., Rees, J., & Rollin, P. (2020). Social identity as a key concept for connecting transformative societal change with individual environmental activism. Journal of Environmental Psychology , 72 , 101525.

Sugiyono. (2014). Educational Research Methods, Quantitative Approach. Qualitative, and R&D . Bandung: Alphabeta

Syakura, MA, & Baridwan, Z. (2014). Determinants of tax planning and compliance behavior of corporate taxpayers. Journal of Multiparadigm Accounting , 5 (2), 185-201.

Trisnawati, M., & Sudirman, W. (2015). Analysis of factors that influence taxpayer compliance in paying hotel tax, restaurant tax and entertainment tax in the city of Denpasar. Udayana University Economics and Business E-Journal , 4 (12), 975-1000.

Law Number 23 of 2014 concerning Regional Government.

Law Number 1 of 2022 concerning Financial Relations Between the Central Government and Regional Governments.

Vanni, F. (2014). Agriculture and Public Goods, The Role of Collective Action . London-New York: Springer Science & Business Media.

Wardani, PS, Subekti, I., & Rosidi, R. (2018). Study of Taxpayer Compliance Behavior in Paying Regional Taxes. Scientific Journal of Public Administration , 4 (2), 122-127.

Widyasari, PA, & Gunawan, MP (2023). Does Tax Avoidance Matter to CEO Narcissism?. Journal of Multiparadigm Accounting , 14 (1), 1-12.

Yasa, INP, Kesawa, AP, & Dewi, NMP (2020). Compliance Mediates the Effect of Awareness, Reform and Perception of Sanctions on Regional Tax Revenue. Accounting Scientific Journal , 5 (1), 106-129.