PEMBAHARUAN SISTIM PERPAJAKAN DAERAH DI INDONESIA INDONESIAN LOCAL TAXATION REFORM

Abstract

Indonesia has experienced a number of phases on its local taxation systems, the latest one was indicated by promulgation of Law No. 28 Year 2009 concerning local taxes and local charges. A significant changes has been made by the said law, such as limitation of local taxes, local taxing empowerment, improvement of control system, and optimalization of tax collection and the use of local tax revenues. Limitation of local taxes is done by determining 16 type of local taxes (5 type provincial taxes and 11 type region/city taxes) and implementing a ‘closed-list’ systems. Local taxing empowerment is done by extending the tax object of several local taxes, introducing new taxes, increasing the maximum tarif of several local taxes, and full discreation of tarif determination to local government. Control system was changed to a preventive and corrective approach, by evaluating the draft of local regulations before they are adapted as local regulation, besides provocating local regulation that is against the higher laws and regulations. Meanwhile, optimalization of tax collection and the use of local tax revenues is done by improving the share of provincial tax revenues to regions/cities, introducing of earmarking on several local taxes, and improving the arrangement of tax incentives. The local taxation reform was driven by the need for better implementation of local otonomy and fiscal decentralization policies, by granting more revenue sources to local government gradually. Devolution of a certain provincial tax and several central taxes to regions/cities can be seen as a reformulation of national tax system by redetermining the type of national taxes, provincial taxes, and region/city taxes. Economic condition and tax potential varies among regions/cities in Indonesia. A special stragtegy is needed to assist and facilitate a certain region/city in implementing the new local tax system. On the other hand, evaluation and improvement of local tax policies needs to be done continuously to develope an efficient and effective local taxation system in Indonesia.