Simplification of Local Taxes as an Optimization of the Budgetary Function in an Effort to Restore the National Economy in Lampung Province

Abstract

Inequality of regional income with one another, hampers the development process in several regions and has not increased regional independence due to dependence on transfer of funds from the central government. This happens because the local government has not been able to optimize the source of local revenue, namely local taxes to increase local revenue. With this situation, the government seeks to simplify the local taxation system including tax types, tax rates. Regional independence is also expected to increase regional financial capacity which will have an impact on the recovery of the national economy after the pandemic. This research will be conducted normatively empirically, namely combining normative legal elements with the review of laws and regulations relating to the simplification of local taxes, which are then supported by the addition of empirical data or elements through socio-legal, statute and conceptual approaches. Based on the above, this research is expected to contribute suggestions for the implementation of regional tax simplification in Lampung Province so that the implementation of regional tax simplification can be optimal and have a positive impact on increasing regional financial capacity.