Mempertimbangkan Reformasi Pajak Daerah berdasarkan Analisis Subnational Tax Effort

DDTC Working Paper 2421

14 September 2021

Total Downloads 1971

This working paper presents comprehensive analysis of subnational tax effort in the context of Indonesia’s fiscal decentralization system. Through panel econometric methodologies, the paper assesses the statistical significance of several potential determinants of subnational tax revenue, using data from 113 districts over the period 2015-2019. Furthermore, the results also show districts that have improved their tax performance, measured by the tax effort index, as well as those which have a less favourable performance. Tax effort comparisons are also made among the districts according to several indicators such as tax ratio, income groups, and tax revenue targets in subnational government budgets. This paper can be used as a reference for strengthening the roadmap for fiscal and subnational tax management in the future.

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