Sunset Policy in Local Tax Reviewed from Equity Principles and Its Impact on Tax Payers Compliance (Case Study on Tax Agency And Retribution of Jakarta Provincial Goverment)
Lisa Andayani Hasibuan
University Of Indonesia
Abstract
Jakarta Provincial Government has implemented sunset policy for local tax in 2015 until 2018. This policy goals is optimizing local tax revenue in DKI Jakarta. In the other hand, the implementation of this policy made contradictive effects for the taxpayers compliance. Based on equality principles of tax collection by Adam Smith (1939), this policies can lead to unequality between taxpayers who have paid honestly and on time with uncomply taxpayer. This policy can influence taxpayers to uncomply because in equality principle tax burdens among tax subjects should be balanced with their abilities and a state is not allowed to discriminate among fellow taxpayers. In the same situation the taxpayer must be treated the same and in different circumstances the taxpayer must be treated differently. This thesis illustrated the sunset policy reviewed from equity principle in tax collection and the effect of sunset policy on taxpayer compliance.
Keywords: Tax Policy, Sunset Policy, Equity Principle, Optimization of Local Tax Revenue, Taxpayer Compliance
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