PIGGYBACK TAX: POTENTIAL FOR TAX EXTENSIFICATION THROUGH THE IMPOSITION OF MOTOR VEHICLE TAX (PKB) OPTIONS IN THE PROVINCE OF EAST NUSA TENGGARA (NTT)
Keywords:
Fiscal decentralization, motor vehicle tax (PKB), additional levies (Opsen), local revenue (PAD), tax simulationAbstract
Objective: This study aims to analyze the potential implementation of an additional motor vehicle tax (PKB) based on Law Number 1 of 2022 concerning Central and Regional Financial Relations (HKPD Law) to increase regional original revenue (PAD) for the East Nusa Tenggara (NTT) Provincial Government and Kupang City. Method: A quantitative approach was used using time-series simulations (2021–2023) and trend forecasting (2024–2029) using Microsoft Excel. Data on PKB realization, vehicle numbers, and tax rates were analyzed to model revenue under both a revenue-sharing framework (Law No. 28/2009) and an additional 66% tax burden. Results: The OPsen system significantly increased district/city regional revenue compared to the revenue-sharing system. In 2023, the OPsen contributed 39.76% (Rp 116.17 billion) to Kupang City's Regional Original Revenue (PAD), compared to 10.15% (Rp 29.67 billion) under the revenue-sharing framework. This aligns with the objectives of fiscal decentralization, namely strengthening regional tax authority while maintaining administrative efficiency. However, horizontal disparities may arise due to variations in the number of registered vehicles across regions. Implications: The OPsen mechanism enhances fiscal autonomy but requires strong public outreach to mitigate potential demand shocks from higher tax burdens. Local governments should diversify revenue streams, such as optimizing levies related to tourism and village-owned enterprises (BUMDes), to reduce overreliance on the Motor Vehicle Tax (PKB). Policymakers must balance fairness and efficiency in implementing additional levies to ensure sustainable regional fiscal health.
References
Aaron, H. J., & Boskin, M. J. (2011). The economics of taxation. Brookings Institution Press.
Ariyanti, F., & Yasin, M. (2024). Analisis kontribusi pajak kendaraan bermotor terhadap pendapatan asli daerah di Indonesia. Jurnal Ekonomi Daerah, 12(1), 45-60.
Bahl, R., & Cyan, M. (2011). Local government piggyback taxation: An instrument for fiscal autonomy. International Tax Journal, 38(4), 23-39.
Battersby, B., et al. (2021). Fiscal decentralization and regional inequality: Evidence from South Africa. Journal of Development Economics, 149, 102581.
Bird, R. M. (2011). Subnational taxation in developing countries: A review of the literature. Journal of International Commerce, Economics and Policy, 2(1), 139-161.
Büttner, T. (2006). Local business taxation and competition for capital: The choice of the tax rate. Regional Science and Urban Economics, 36(2), 231-252.
Cepiku, D., et al. (2016). Local government fiscal health: A comparative analysis. Public Finance Review, 44(3), 356-381.
Digdowiseiso, K., et al. (2023). Surcharge tax policy and its implications on local revenue generation. Journal of Public Economic Theory, 25(2), 210-230.
Direktorat Jenderal Perimbangan Keuangan. (2024). Laporan realisasi penerimaan pajak daerah 2023. Kementerian Keuangan Republik Indonesia.
Djpk. (2024). Pedoman teknis pemungutan opsen pajak daerah. Kementerian Keuangan Republik Indonesia.
Edwin Aqil Faiq. (2023). Analysis of surtax policy formulation in the law on financial relations between central and local governments. Journal of Fiscal Policy, 15(3), 89-104.
Elezi, E. (2024). Fiscal decentralization and economic growth: A meta-analysis. Economic Systems, 48(1), 101234.
Fedelino, A. (2010). Piggyback taxation: Theory and international practice. IMF Working Paper, WP/10/147.
Fitriana, R. (2024). Analysis of the impact of motor vehicle tax collection option on regional revenue. Indonesian Journal of Fiscal Studies, 8(2), 112-130.
Hilmiyyah, N., et al. (2023). Analisis potensi opsen pajak kendaraan bermotor bagi penerimaan daerah: Studi kasus Kabupaten Cirebon. Jurnal Akuntansi Publik, 3(1), 123-138.
Marsuni, & Kamal. (2024). Desentralisasi fiskal dan optimalisasi pajak daerah di Indonesia. Jurnal Kebijakan Fiskal, 16(1), 33-48.
McLure Jr, C. E. (2001). The tax assignment problem: Ruminations on how theory and practice depend on history. National Tax Journal, 54(2), 339-363.
Musgrave, R. A. (1959). The theory of public finance: A study in public economy. McGraw-Hill.
Oates, W. E. (1972). Fiscal federalism. Harcourt Brace Jovanovich.
Peraturan Daerah Provinsi Nusa Tenggara Timur Nomor 1 Tahun 2024 tentang Pajak Daerah dan Retribusi Daerah.
Peraturan Daerah Provinsi Nusa Tenggara Timur Nomor 2 Tahun 2010 tentang Pajak Daerah.
Peraturan Pemerintah Nomor 35 Tahun 2023 tentang Ketentuan Umum Pajak Daerah dan Retribusi Daerah.
Putranto, A. A., et al. (2024). Digitalisasi administrasi pajak daerah: Tantangan dan peluang peningkatan PAD. Jurnal Administrasi Publik, 21(3), 205-220.
Saputra, M. A., et al. (2025). Peran Opsen Pajak Kendaraan Bermotor, Dalam Meningkatkan Pendapatan Daerah, Di Samsat Kota Sukabumi. Jurnal Akuntansi Keuangan dan Perpajakan, 01 (04), 537-577.
Sugiyono. (2016). Metode penelitian kuantitatif, kualitatif, dan R&D. Alfabeta.
Todaro, M. P., & Smith, S. C. (2020). Economic development (13th ed.). Pearson.
Undang-Undang Nomor 1 Tahun 2022 tentang Hubungan Keuangan antara Pemerintah Pusat dan Pemerintah Daerah (UU HKPD).
Undang-Undang Nomor 28 Tahun 2009 tentang Pajak Daerah dan Retribusi Daerah (UU PDRD).
Zhao, L., & He, Y. (2024). Fiscal decentralization and local tax compliance: Evidence from China. Journal of Comparative Economics, 52(1), 156-172.
Zimmermannova, J., et al. (2016). Tax compliance and economic growth: A European perspective. European Journal of Political Economy, 43, 1-14.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Fanggidae Rolland E, Bolang Rikhard T. Ch., Molidya Aldarine, Purwanto Edy
This work is licensed under a Creative Commons Attribution 4.0 International License.
