Determination of more specific regional regulations

Oct 13, 2025 by talynt.org 63 views

The Influence of Tax Contributions and Culinary Business Literacy on the Original Revenue of the City of Banda Aceh

Introduction

The city of Banda Aceh, located in the province of Aceh, Indonesia, has been actively seeking ways to increase its Regional Original Revenue (PAD) through various means, including tax contributions and culinary business levies. The Regional Financial and Asset Management Office of Banda Aceh City has been working tirelessly to collect taxes and cleaning fees from culinary businesses, with the aim of meeting and increasing PAD. However, the contribution of culinary businesses to PAD has been relatively low, with a contribution rate of 1.701% and 0.071% per year. This study aims to measure the impact of tax contributions and culinary business levies on the original revenue of the city of Banda Aceh.

Background

Banda Aceh City has been facing significant challenges in increasing its PAD, which is essential for the city's development and growth. The city's economy is heavily reliant on the tourism industry, with many hotels, restaurants, and other culinary businesses operating in the area. However, the existing regulations regarding taxes and levies on these businesses are inadequate, leading to a low contribution rate. The Regional Regulation No. 5 of 1998 concerning Hotel and Restaurant Taxes is considered outdated and inadequate to answer the dynamics and current needs of the city's economy.

Methodology

This study used time series data from January 2008 to December 2012, as well as from January to June 2014, to analyze the contribution of culinary businesses to PAD. The data included taxes and levies of cleaning services imposed on culinary businesses, which were analyzed using the contribution analysis method. The study aimed to measure the impact of tax contributions and culinary business levies on the original revenue of the city of Banda Aceh.

Results

The results of the study showed that the tax and levies of culinary businesses contributed to the PAD of Banda Aceh City were 1.701% and 0.071% per year, respectively. This relatively low contribution rate indicates that there is a great potential that has not been explored from the culinary sector in increasing regional income. The study also found that the existing regulations regarding taxes and levies on culinary businesses are inadequate, leading to a low contribution rate.

Discussion

The study's findings suggest that the city of Banda Aceh has a great potential to increase its PAD through the culinary business sector. However, the existing regulations regarding taxes and levies on these businesses are inadequate, leading to a low contribution rate. The study recommends that efforts to increase these contributions will be carried out through the determination of more specific regional regulations regarding taxes that must be paid by culinary businesses. At present, the collection of culinary taxes still refers to Regional Regulation No. 5 of 1998 concerning Hotel and Restaurant Taxes, which are considered inadequate to answer the dynamics and current needs.

In addition, the existing regulations for cleaning services levies are regulated in Qanun No. 13 of 2007. However, there is still a need to apply more strict sanctions in dealing with the issue of arrears in payment of levies. Strengthening this regulation will help create compliance among culinary businesses and significantly increase regional income.

Conclusion

The study's findings suggest that the city of Banda Aceh has a great potential to increase its PAD through the culinary business sector. However, the existing regulations regarding taxes and levies on these businesses are inadequate, leading to a low contribution rate. The study recommends that efforts to increase these contributions will be carried out through the determination of more specific regional regulations regarding taxes that must be paid by culinary businesses. The city government should also conduct socialization of taxes and levies to culinary businesses, so they understand their obligations and their contributions to regional development.

Recommendations

Based on the study's findings, the following recommendations are made:

Determination of more specific regional regulations: The city government should determine more specific regional regulations regarding taxes that must be paid by culinary businesses.
Strengthening of regulations for cleaning services levies: The city government should strengthen the regulations for cleaning services levies, including the application of more strict sanctions in dealing with the issue of arrears in payment of levies.
Socialization of taxes and levies: The city government should conduct socialization of taxes and levies to culinary businesses, so they understand their obligations and their contributions to regional development.
Collaboration efforts: The city government should collaborate with culinary businesses to increase transparency in tax management and levies, and to create incentive programs for tax-devout businesses.

Future Research Directions

This study provides a foundation for future research on the impact of tax contributions and culinary business levies on the original revenue of the city of Banda Aceh. Future research could explore the following directions:

Analysis of the impact of tax contributions on the local economy: Future research could analyze the impact of tax contributions on the local economy, including the impact on employment, income, and poverty reduction.
Development of a more comprehensive tax system: Future research could develop a more comprehensive tax system that takes into account the needs and dynamics of the city's economy.
Evaluation of the effectiveness of regulations: Future research could evaluate the effectiveness of regulations regarding taxes and levies on culinary businesses, and identify areas for improvement.

Limitations of the Study

This study has several limitations, including:

Limited data availability: The study was limited by the availability of data, which only included time series data from January 2008 to December 2012, as well as from January to June 2014.
Methodological limitations: The study used a contribution analysis method, which may not capture the full impact of tax contributions and culinary business levies on the original revenue of the city of Banda Aceh.
Lack of control variables: The study did not control for other variables that may impact the original revenue of the city of Banda Aceh, such as economic growth, population growth, and infrastructure development.

Conclusion

In conclusion, this study provides a comprehensive analysis of the impact of tax contributions and culinary business levies on the original revenue of the city of Banda Aceh. The study's findings suggest that the city of Banda Aceh has a great potential to increase its PAD through the culinary business sector. However, the existing regulations regarding taxes and levies on these businesses are inadequate, leading to a low contribution rate. The study recommends that efforts to increase these contributions will be carried out through the determination of more specific regional regulations regarding taxes that must be paid by culinary businesses. The city government should also conduct socialization of taxes and levies to culinary businesses, so they understand their obligations and their contributions to regional development.
Frequently Asked Questions (FAQs) about the Influence of Tax Contributions and Culinary Business Literacy on the Original Revenue of the City of Banda Aceh

Q: What is the main objective of this study? A: The main objective of this study is to measure the impact of tax contributions and culinary business levies on the original revenue of the city of Banda Aceh.

Q: What data was used in this study? A: The study used time series data from January 2008 to December 2012, as well as from January to June 2014, to analyze the contribution of culinary businesses to PAD.

Q: What were the results of the study? A: The results of the study showed that the tax and levies of culinary businesses contributed to the PAD of Banda Aceh City were 1.701% and 0.071% per year, respectively.

Q: What are the implications of the study's findings? A: The study's findings suggest that the city of Banda Aceh has a great potential to increase its PAD through the culinary business sector. However, the existing regulations regarding taxes and levies on these businesses are inadequate, leading to a low contribution rate.

Q: What recommendations are made by the study? A: The study recommends that efforts to increase these contributions will be carried out through the determination of more specific regional regulations regarding taxes that must be paid by culinary businesses. The city government should also conduct socialization of taxes and levies to culinary businesses, so they understand their obligations and their contributions to regional development.

Q: What are the limitations of the study? A: The study has several limitations, including limited data availability, methodological limitations, and lack of control variables.

Q: What are the future research directions? A: Future research could explore the following directions:

Analysis of the impact of tax contributions on the local economy: Future research could analyze the impact of tax contributions on the local economy, including the impact on employment, income, and poverty reduction.
Development of a more comprehensive tax system: Future research could develop a more comprehensive tax system that takes into account the needs and dynamics of the city's economy.
Evaluation of the effectiveness of regulations: Future research could evaluate the effectiveness of regulations regarding taxes and levies on culinary businesses, and identify areas for improvement.

Q: What are the implications of the study for policymakers? A: The study's findings suggest that policymakers should prioritize the development of a more comprehensive tax system that takes into account the needs and dynamics of the city's economy. Policymakers should also conduct socialization of taxes and levies to culinary businesses, so they understand their obligations and their contributions to regional development.

Q: What are the implications of the study for business owners? A: The study's findings suggest that business owners should be aware of the existing regulations regarding taxes and levies on culinary businesses. Business owners should also take advantage of incentive programs for tax-devout businesses and participate in socialization of taxes and levies to understand their obligations and contributions to regional development.

Q: What are the implications of the study for the community? A: The study's findings suggest that the community should be aware of the importance of tax contributions and culinary business levies in increasing the PAD of the city of Banda Aceh. The community should also support the development of a more comprehensive tax system and the socialization of taxes and levies to culinary businesses.

Q: What are the implications of the study for the city government? A: The study's findings suggest that the city government should prioritize the development of a more comprehensive tax system that takes into account the needs and dynamics of the city's economy. The city government should also conduct socialization of taxes and levies to culinary businesses, so they understand their obligations and their contributions to regional development.

Conclusion