Analysis of the improvements in the land value zone and revenue from rural and urban property taxes in North Sumatera and Aceh Provinces, Indonesia

Author:

Fachrudin K A

Abstract

Abstract Based on Law Number 28 the year 2009, as of January 1, 2011, the Government of Indonesia transferred the stipulation and collection of Rural and Urban Property Taxes (PBB-P2) from central tax to regional taxes. Revenue from these taxes will be grouped as Regional Original Revenues so that its finance can be strengthened. The problem is that until now, many regions have not been able to improve their Land Value Zone (ZNT) to market value. Even though based on this ZNT the tax object sales value (NJOP) will be determined. The NJOP multiplied by the tax rate will become the amount of PBB-P2 taxes that must be paid. This research examines 17 districts in North Sumatra and Aceh Provinces to find out what are the problems in improving ZNT and imposing taxes. Data obtained from in-depth interviews were analyzed to reach general conclusions. The results obtained from the districts in North Sumatra and Aceh Provinces showed that the determination of ZNT that was close to market value could not be done due to lack of the ability of a community to pay, politics, ability to appraise, and social culture problems; so no differences between the two provinces. It is hoped that the government can overcome the problems.

Publisher

IOP Publishing

Subject

General Engineering

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