Potential Revenue and Effectiveness of Motor Vehicle Tax as Original Revenue Case Study in East Java Province
Abstract
This study aims to analyze the revenue potential and effectiveness of Motor Vehicle Tax
collection as a source of Regional Original Revenue in East Java Province during the 2021–2024
period. The research employs a descriptive quantitative approach using secondary data obtained
from the East Java Regional Revenue Agency (Bapenda), Regional Government Financial Reports,
and Regional Budget Realization Reports. Revenue potential was analyzed through annual growth
trends, while effectiveness was measured using the ratio between realized revenue and targeted
revenue. The findings indicate that Motor Vehicle Tax revenue consistently increased from IDR 6.87
trillion in 2021 to IDR 9.25 trillion in 2024, with annual growth averaging approximately 9%.
Furthermore, the effectiveness ratio remained above 100% throughout the observation period,
ranging from 107.41% to 113.45%, indicating a very effective level of tax collection. The highest
effectiveness was achieved in 2024, reflecting improved taxpayer compliance, digitalization of tax
administration services, and the implementation of tax incentive policies by the provincial
government. These results demonstrate that Motor Vehicle Tax has substantial potential and
continues to make a significant contribution to Regional Original Revenue in East Java Province.
The study recommends strengthening tax administration, improving taxpayer databases, expanding
digital payment services, and enhancing public awareness to ensure sustainable growth in regional
tax revenue.
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