Strengthening Politics of Taxation through Broadening Power of Local Tax Institution: Indonesia case

DOI

10.2991/aicobpa-18.2019.62How to use a DOI?

Keywords

politics of taxation; local tax agency; administrative capacity

Abstract

Lacking in administrative capacity caused local tax agency lack in taxing capacity. Lack of taxing capacity brought a low contribution of a local tax to local government revenue in Indonesia, especially regency and city. The purpose of this research is to analyze local taxing agency capacity from the perspective of politics of taxation and to offer a recommendation for strengthening local taxing capacity. This qualitative research used in-depth interview of informants who are involved in local tax collection from several local governments. The result shows that lack of taxing capacity is influenced by two factors. First, it is insufficient authority of local tax agency to reflect local autonomy policy both from central and local government, and the second is too much political intervention that influences local tax agency. There are two alternatives to strengthen local tax agency taxing capacity. The first alternative is by strengthening local tax agency as local bureaucracy by empowering and enlarging the authority to execute local tax targets. The second alternative is by integrating local and central tax agency as an autonomous tax collection institution. In the latter alternative, local government receive local tax revenue from this institution based on each tax basis.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - M. R. Khairul Muluk
AU  - Inayati Inayati
PY  - 2019/08
DA  - 2019/08
TI  - Strengthening Politics of Taxation through Broadening Power of Local Tax Institution: Indonesia case
BT  - Proceedings of the Annual International Conference of Business and Public Administration (AICoBPA 2018)
PB  - Atlantis Press
SP  - 272
EP  - 275
SN  - 2352-5428
UR  - https://doi.org/10.2991/aicobpa-18.2019.62
DO  - 10.2991/aicobpa-18.2019.62
ID  - Muluk2019/08
ER  -