Increase supervision and law enforcement

Oct 13, 2025 by talynt.org 118 views

The Role of the Regional Revenue Service in Increasing Entertainment Tax Revenue as a Source of Local Revenue: A Study at the Medan City Regional Revenue Service

Introduction

Regional autonomy is a concept that has been widely adopted in many countries, including Indonesia. The idea behind regional autonomy is to give regions more independence in managing their own government and development. One way to achieve this independence is to optimize the potential of Regional Original Revenue (PAD). Local taxes, such as entertainment tax, are one of the potential sources of PAD. In the city of Medan, the entertainment tax made the biggest contribution to PAD, reaching 35%. However, in 2009 there was a decrease in entertainment tax revenue, where the target set in the APBD was not achieved.

The Importance of Entertainment Tax Revenue

Entertainment tax revenue is a significant source of income for local governments. In Medan City, entertainment tax revenue accounts for 35% of the total PAD. This revenue is used to fund various development projects, such as infrastructure, education, and healthcare. Therefore, it is essential to increase entertainment tax revenue to support regional development.

The Role of the Regional Revenue Service

The Regional Revenue Service plays a crucial role in managing entertainment tax revenue. The service is responsible for collecting, bookkeeping, and inspecting entertainment tax payments. The service also oversees the tax payment process and ensures that taxpayers comply with regional regulations on entertainment taxes.

Methodology

This study used a qualitative descriptive analysis methodology. Data was collected through interviews with key informants, such as the Head of the Regional Revenue Service, the Billing Office, the Head of the Billing and Calculation Section, and additional informants, such as the Head of the Bookkeeping and Verification Section, the Head of the Consideration and Objection Section, and the Taxpayer.

Results

The results of this study showed that the Regional Revenue Service played a crucial role in increasing entertainment tax revenue. The service's optimal role includes several aspects, namely:

*** Collection: Conducting data collection of objects and tax subjects, determining the amount of tax that must be paid by taxpayers, and overseeing the tax payment process. *** Bookkeeping: Performing regular records to collect financial data and information related to entertainment tax. *** Inspection: Auditing Taxpayer Compliance in fulfilling regional tax obligations in accordance with Regional Regulations on Entertainment Taxes.

The Role of the Regional Revenue Service in Increasing Entertainment Tax Revenue

Based on the data obtained, the role of Medan City Regional Revenue Service in increasing entertainment tax revenue was classified as good during 2005-2008. The target of entertainment tax revenue in that period was achieved. However, in 2009 there was a decrease in entertainment tax revenue. This is caused by the existence of taxpayers who are in arrears in the payment of entertainment taxes.

Conclusion

This study highlights the need for an increase in supervision and law enforcement of taxpayers who are in arrears. In addition, intensive socialization and education need to be carried out to taxpayers about the importance of paying entertainment tax on time. That way, entertainment tax revenue can be increased and contribute greater in supporting regional development.

Recommendations

Based on the findings of this study, the following recommendations are made:

Increase supervision and law enforcement: The Regional Revenue Service should increase its supervision and law enforcement of taxpayers who are in arrears in paying entertainment taxes.
Intensive socialization and education: The Regional Revenue Service should carry out intensive socialization and education to taxpayers about the importance of paying entertainment tax on time.
Improve tax collection system: The Regional Revenue Service should improve its tax collection system to ensure that taxpayers comply with regional regulations on entertainment taxes.
Increase transparency and accountability: The Regional Revenue Service should increase transparency and accountability in its operations to ensure that taxpayers have confidence in the tax collection system.

Limitations of the Study

This study has several limitations. Firstly, the study only focused on the role of the Regional Revenue Service in increasing entertainment tax revenue. Secondly, the study only collected data from key informants and taxpayers. Therefore, the study may not be representative of the entire population.

Future Research Directions

This study provides several directions for future research. Firstly, future studies can explore the impact of the Regional Revenue Service's role in increasing entertainment tax revenue on regional development. Secondly, future studies can examine the effectiveness of the tax collection system in ensuring that taxpayers comply with regional regulations on entertainment taxes.

Conclusion

In conclusion, this study highlights the importance of the Regional Revenue Service's role in increasing entertainment tax revenue. The service's optimal role includes several aspects, namely collection, bookkeeping, and inspection. The study also recommends that the Regional Revenue Service increase supervision and law enforcement of taxpayers who are in arrears, carry out intensive socialization and education, improve the tax collection system, and increase transparency and accountability.
Frequently Asked Questions (FAQs) about the Role of the Regional Revenue Service in Increasing Entertainment Tax Revenue

Q: What is the role of the Regional Revenue Service in increasing entertainment tax revenue?

A: The Regional Revenue Service plays a crucial role in managing entertainment tax revenue. The service is responsible for collecting, bookkeeping, and inspecting entertainment tax payments. The service also oversees the tax payment process and ensures that taxpayers comply with regional regulations on entertainment taxes.

Q: What are the key aspects of the Regional Revenue Service's role in increasing entertainment tax revenue?

A: The Regional Revenue Service's role in increasing entertainment tax revenue includes several key aspects, namely:

Collection: Conducting data collection of objects and tax subjects, determining the amount of tax that must be paid by taxpayers, and overseeing the tax payment process.
Bookkeeping: Performing regular records to collect financial data and information related to entertainment tax.
Inspection: Auditing Taxpayer Compliance in fulfilling regional tax obligations in accordance with Regional Regulations on Entertainment Taxes.

Q: What are the benefits of increasing entertainment tax revenue?

A: Increasing entertainment tax revenue can have several benefits, including:

Supporting regional development: Entertainment tax revenue can be used to fund various development projects, such as infrastructure, education, and healthcare.
Improving tax collection system: Increasing entertainment tax revenue can lead to an improvement in the tax collection system, making it more efficient and effective.
Enhancing taxpayer compliance: Increasing entertainment tax revenue can lead to an increase in taxpayer compliance, as taxpayers are more likely to pay their taxes on time.

Q: What are the challenges faced by the Regional Revenue Service in increasing entertainment tax revenue?

A: The Regional Revenue Service may face several challenges in increasing entertainment tax revenue, including:

Taxpayer non-compliance: Taxpayers may not comply with regional regulations on entertainment taxes, leading to a decrease in entertainment tax revenue.
Inefficient tax collection system: The tax collection system may be inefficient, leading to a decrease in entertainment tax revenue.
Lack of resources: The Regional Revenue Service may lack the necessary resources, such as personnel and equipment, to effectively collect and manage entertainment tax revenue.

Q: How can the Regional Revenue Service overcome these challenges?

A: The Regional Revenue Service can overcome these challenges by:

Increasing supervision and law enforcement: The Regional Revenue Service can increase its supervision and law enforcement of taxpayers who are in arrears in paying entertainment taxes.
Improving the tax collection system: The Regional Revenue Service can improve its tax collection system to make it more efficient and effective.
Providing intensive socialization and education: The Regional Revenue Service can provide intensive socialization and education to taxpayers about the importance of paying entertainment tax on time.

Q: What are the implications of this study for regional development?

A: This study highlights the importance of the Regional Revenue Service's role in increasing entertainment tax revenue. The study's findings suggest that the Regional Revenue Service can play a crucial role in supporting regional development by increasing entertainment tax revenue. Therefore, regional governments should prioritize the development of the Regional Revenue Service to ensure that it can effectively collect and manage entertainment tax revenue.

Q: What are the limitations of this study?

A: This study has several limitations, including:

Limited scope: The study only focused on the role of the Regional Revenue Service in increasing entertainment tax revenue.
Limited data: The study only collected data from key informants and taxpayers.
Limited generalizability: The study's findings may not be generalizable to other regions or contexts.

Q: What are the future research directions for this study?

A: Future research directions for this study include:

Examining the impact of the Regional Revenue Service's role on regional development: Future studies can examine the impact of the Regional Revenue Service's role in increasing entertainment tax revenue on regional development.
Evaluating the effectiveness of the tax collection system: Future studies can evaluate the effectiveness of the tax collection system in ensuring that taxpayers comply with regional regulations on entertainment taxes.
Investigating the role of other factors in increasing entertainment tax revenue: Future studies can investigate the role of other factors, such as taxpayer compliance and the tax collection system, in increasing entertainment tax revenue.