The Impact of the Motor Vehicle Tax Grace on the Increase of the West Java Province’s Locally Generated Revenue

Abstract

Tax award is expected to be able to trigger the West Java people to pay motor vehicle tax. However, there is still an increase in the number of non-re-registered vehicles. Therefore, the regulation of the tax award needs to be reviewed. This study aims to find a solution so that the award can increase the West Java Province’s Locally Generated Revenue and optimize the collection of Motor Vehicle Tax. This study employed a judicial-normative approach that prioritizes library research and the data implementation in practice. It is a descriptive study. It mainly consists of a library research phase, which is the collection of secondary data in the form of primary and secondary legal materials. In addition, to obtain primary data as support, the data is analyzed qualitatively and juridically. The study concludes that the tax award of motorized vehicle tax is correlated directly with the increase of locally generated revenue of the West Java Province. Nevertheless, the award does not substantially affect legal awareness and compliance. In fact, the program does not contribute towards the realization of motor vehicle tax. The main obstacles often felt by the regional income agency in collecting motorized vehicle tax is the low level of awareness and knowledge of the people on taxes. The effort to increase locally generated revenue from the motor vehicle tax sector is represented by programs that indirectly affect legal compliance.