Taxpayer's Response to The Program for Tax Penalty Relief of Motor Vehicles in East Java

Abstract

One of the benefits of paying taxes is to have a positive economic impact and is aimed at the welfare of the community. Almost all regions in Indonesia explore their potential income through local taxes. To be able to increase regional income, among others, it can be pursued through a policy that requires everyone to pay taxes in accordance with their obligations. One of the tax objects that is handed over to the provincial government for its regulation and management is the Motor Vehicle Tax. Motor Vehicle Tax is a tax on ownership and/or control of motorized vehicles. There is a low awareness of taxpayers to pay taxes resulting in arrears in payments. The East Java provincial government carried out a tax penalty relief program in the hope of easing the economic burden on the community in the midst of the Covid-19 pandemic. With this policy, it is hoped that motor vehicle owners who are late in paying vehicle taxes will not be penalized. The existence of this program should be able to be utilized by owners of privately owned vehicles, public transportation, and operational vehicles in the company. The purpose of this study is to find out the relationship between the motor vehicle tax penalty relief program and the awareness of taxpayers to pay motor vehicle tax arrears. This study shows that there is no significant relationship between the variable of the motor vehicle tax penalty relief program and the taxpayer's awareness of paying motor vehicle tax arrears. Awareness of good taxpayers has an impact by not responding to the tax penalty relief program because they have acted to comply with the provisions to pay on time.