KEBIJAKAN EARMARKING PAJAK BAHAN BAKAR KENDARAAN BERMOTOR UNTUK PENGENDALIAN LINGKUNGAN DI DAERAH ISTIMEWA YOGYAKARTA

This study comprehensively analyzed the earmarking policy on motor vehicle fuel tax as an environmental control in the Special Region of Yogyakarta. This qualitative study systematically described relevant literature to be compared with the implementation of earmarking policies in the Special Region of Yogyakarta. Earmarking policy played a major role in environmental taxes for its revenue can be directly allocated for the improvement of the environment and social sector of the community. The result of the analysis showed that the Special Region of Yogyakarta has made clear regulations on the allocation of motor vehicle fuel tax levies for the prevention of environmental damage and air pollution through Regional Regulation Number 3 of 2011. The implementation also implied strong justification for the application of the earmarking policy. Furthermore, the argument of implementation earmarking policy also provided funds for local governments. The amount of the allocation is 10%. However, this tax revenue is not the only source that is used to fund environmental control programs under the authority of the Environment and Forestry Service. These conditions can imply weak justification for the implementation of earmarking policy.