TWO SIDES OF THE APPLICATION OF MOTOR VEHICLE TAX PENALTY ABOLITION (REDUCTION AND EXEMPTION) POLICY
Theoretically, tax sanctions aim to avoid undesirable behaviour and increase compliance. On the other hand, there is a tendency for some local governments in Indonesia to eliminate sanctions on Motor Vehicle Taxes to increase local revenue. This paradoxical phenomenon is fascinating to study in terms of how applying the Motor Vehicle Tax penalty abolition policy is appropriate regarding the effectiveness and purpose of administrative sanctions. The research method used is quantitative; the sample used is local revenue in the form of Motor Vehicle Tax in West Java province. The results of this study indicate that the implementation of the policy of abolishing sanctions on Motor Vehicle Tax in West Java is appropriate in terms of effectiveness, as seen from the results of the percentage of realization of Motor Vehicle Tax revenue in West Java in 2021 and 2022 above 100 percent, which means that the implementation of the tax penalty abolition policy is very effective. Meanwhile, in terms of the purpose of administrative sanctions, the application of the policy of eliminating penalties for Motor Vehicle Tax in West Java is not appropriate because it is considered not to support the objectives to be achieved compared to these sanctions; it will eliminate legal certainty against Motor Vehicle Tax.
Keywords: Tax, Local Tax, Motor Vehicle Tax, Tax Penalty Abolition
