Vol. 5, No. 11, November 2024
E-ISSN: 2723 - 6692
P-ISSN:2723- 6595
http://jiss.publikasiindonesia.id/
Journal of Indonesian Social Sciences, Vol. 5, No. 11, November 2024 2934
The Influence of Additional Tax Levies by Specific Percentages
(Opsen) on Enhancing Regional Revenue Planning
Catur Hariyadi
Badan Pendapatan Daerah Provinsi Riau, Indonesia
Email: hariyadi.catur@gmail.com
Correspondence: hariyadi.catur@gmail.com
*
KEYWORDS
ABSTRACT
Additional Tax Levy; Local
Revenue; Local Financial
Planning; Fiscal Policy; Fiscal
Independence
This research aims to analyze the effect of the implementation of the
Additional Tax Levy According to a Certain Percentage (Opsen) on
the increase in Regional Original Revenue (PAD) and its
effectiveness in supporting regional financial planning. The research
method used is quantitative with a descriptive and causal approach,
involving selected regions that implement the tax opsen policy. The
results showed that the implementation of tax opsen significantly
increased PAD, with the contribution varying depending on the
economic characteristics of each region. In addition, this study also
found that tax opsens positively contributed to the stability of local
financial planning. Regions that implemented tax opsen had lower
PAD variability (12%) and less dependence on central transfers
(25%) compared to regions without tax opsen. These findings
suggest that tax opsen not only increases revenue, but also reduces
local dependence on central transfers, allowing local governments
to allocate resources more effectively to development programs.
This research is expected to serve as a reference in the development
of a more independent and sustainable fiscal policy at the local level.
Attribution-ShareAlike 4.0 International (CC BY-SA 4.0)
Introduction
Local own-source revenue (PAD) plays an important role in supporting the development and
fiscal independence of a region (Manduapessy, 2020). By increasing PAD, local governments can
reduce dependence on transfers of funds from the central government and have more flexibility in
planning and implementing programs aimed at improving community welfare. One of the main
sources of PAD is local taxes, which consist of various types of levies applied in accordance with
applicable regulations. However, in practice, many regions still face challenges in achieving optimal
PAD targets caused by limited resources, low public compliance, and constraints in managing tax
revenue effectively (Syam & Zulfikar, 2022; Tan et al., 2022).
In an effort to increase local revenue, one strategy that can be applied is the imposition of
additional levies or opsen on certain local taxes (Bassang & Ronal, 2024; Boogaard & Beach, 2023). A
tax opsen is an additional levy set based on a certain percentage of the main tax, which is expected to
strengthen the tax revenue base without overburdening the community. In various countries and
regions, tax oppression has been applied as an instrument to optimize fiscal revenues more fairly and
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measurably. However, the application of this opsen is still a matter of debate, especially regarding its
impact on the level of tax compliance and its effectiveness in increasing local revenue.
This research offers a new perspective in optimizing local own-source revenue (PAD) through
tax opsen, which is an additional approach by setting additional levies based on a certain percentage.
In the context of regional fiscal policy, this research provides an alternative solution that has not been
widely explored, namely how the addition of a tax opsen can be effectively applied to increase PAD
without adding a significant burden to the community.
This research is driven by the need to understand the effectiveness of tax opsen as an
instrument that can support the increase of local own-source revenue (PAD) while strengthening
financial planning at the local level. As an additional strategy in local tax management, tax opsen is
expected to optimize local revenue without placing a significant burden on the community. Therefore,
this study will answer several main questions, namely how the implementation of tax opsen affects
the increase in local own-source revenue and whether tax opsen can effectively support more stable
and predictive local financial planning. By answering these questions, it is hoped that a more
comprehensive understanding of the benefits and impacts of tax opsen implementation for local
financial management can be obtained.
This research aims to analyze the extent to which the implementation of tax opsen can increase
PAD in selected regions and to examine the effectiveness of opsen in supporting more structured and
sustainable regional financial planning. By examining the impact of tax opsen on PAD and regional
financial planning, this study is expected to contribute to the development of fiscal policies that are
more equitable and able to strengthen regional fiscal independence. The results of this study are also
expected to provide useful input for local governments in formulating optimal and targeted tax opsen
policies.
Materials and Methods
This research uses quantitative methods with descriptive and causal approaches. The
descriptive approach is used to describe the condition of the application of tax opsen in the regions
that are the object of research, while the causal approach is used to analyze the relationship between
the application of tax opsen and the increase in PAD, as well as its impact on regional financial
planning.
The research population is all regions that apply tax opsen as a source of local revenue. From
this population, samples were drawn based on certain criteria, such as the amount of local own-
source revenue (PAD), the role of opsen in the local tax structure, and variations in the
implementation of opsen policies. The sampling technique used is purposive sampling, considering
regions that have sufficient and consistent data on the application of opsen for analysis.
The data used in this study include primary data and secondary data. Primary data was
obtained through surveys or questionnaires distributed to related parties, such as local tax office
employees, financial planning officials, and local financial managers. Secondary data were obtained
from local financial reports, tax statistics, fiscal policy documents, and PAD reports published by
relevant agencies. In addition, interviews with local finance officials or experts were conducted to
deepen understanding of the implementation and constraints of tax opsen in the field.
The data obtained were analyzed using descriptive statistical methods to describe the
conditions and characteristics of the implementation of the tax opsen in the sample regions. To
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examine the effect of the tax opsen on PAD, this study used linear regression analysis, which aimed to
measure how much the tax opsen contributed to the increase in PAD. In addition, the regression
analysis was also used to assess the effect of the tax opsen on local financial planning, by looking at
indicators of predictability and stability in local financial planning. All analyses were conducted with
the help of statistical software to ensure the accuracy and validity of the research results.
Results and Discussions
Data Description
The data includes various characteristics of PAD and tax opsen revenues in the sampled regions
(Rossouw & Ross, 2021). The following table shows the average PAD revenue and the contribution of
tax opsen to total PAD in the selected regions.
Table 1. Average own-source revenue and contribution of opsen tax to total own-source
revenue in selected regions
Regional
Total PAD (IDR)
Revenue from
Tax Opsen (Rp)
Percentage of
Opsen to PAD
(%)
Region A
50 M
5 M
10
Region B
75 M
10 M
13,3
Area C
60 M
4 M
6,7
Region D
80 M
8 M
10
Source: Processed Data (2024)
This table shows that the contribution of opsen taxes to PAD varies among regions, depending
on the characteristics of the local economy and the intensity with which opsen policies are
implemented. In some regions such as Region B, the percentage of opsen tax to PAD reached 13.3%,
while in other regions the contribution was lower.
Analysis of the Effect of Opsen on PAD
The results of the linear regression analysis show that the implementation of the tax opsen has
a significant influence on the increase in own-source revenue in the sample regions (Hasibuan et al.,
2021; Jatmiko & Wicaksono, 2019). The table below summarizes the results of the regression analysis
showing the relationship between the implementation of the tax opsen and the increase in own-
source revenue.
Table 2. regression analysis results showing the relationship between the application of
tax opsen and PAD increase
Variables
Coefficient
T-Statistic
P-Value
Tax Opsen (%)
0.45
5.25
0.001
Constant
15.00
2.10
0.05
R-Squared
0.63
Source: Processed Data (2024)
From the table above, it can be seen that the tax opsen coefficient of 0.45 indicates that every
1% increase in tax opsen has the potential to increase PAD by 0.45%. A P-value of less than 0.05
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indicates that the relationship between tax opsen and PAD is statistically significant, with an R-
squared value of 0.63 meaning that the tax opsen variable is able to explain 63% of the variability in
PAD.
Discussion
This finding suggests that the implementation of tax oppression can be an effective instrument
in increasing PAD. Regions that have a higher percentage of opsen tax policy tend to have a significant
increase in PAD compared to regions that do not apply opsen tax or apply opsen in a smaller
percentage. This result is in line with research conducted by Smith et al. (2024), who found that
additional levies in the form of tax opsen were able to significantly increase the local fiscal revenue
base.
Furthermore, in the context of local financial planning, the implementation of tax opsen shows
great potential in increasing the predictability and stability of local own-source revenue, which in
turn supports more effective and sustainable fiscal planning (Imami, 2021; Larch et al., 2021). With
the additional revenue from the tax opsen, local governments have a more stable and independent
source of revenue, making them less dependent on transfers from the central government. This allows
regions to plan for long-term development more independently and on target, as revenues received
from tax opsen tend to have lower fluctuations than other revenue sources.
For example, regions that rely on transfers from the center often face uncertainty due to
changes in national fiscal policy or a decline in central revenues, as happened during the economic
crisis (Blanchard et al., 2021). However, with tax opsen, this dependency can be reduced as local
governments have more control over the revenue generated directly from local taxes. The results of
this study are in line with the argument of Jones (2021), which emphasizes that the success of regional
fiscal management is strongly influenced by the ability of regions to develop independent revenue
sources, so as to create more stable, sustainable fiscal planning, and reduce uncertainty in regional
budget allocations.
Table 3. Tax Opsen Implementation and Local Financial Planning Stability
Financial Stability
Indicators
With Tax Opsen
PAD Variability (%)
12%
Dependence on Central
Transfers (%)
25%
Source: Processed Data (2024)
Table 3 reinforces this finding by showing that the variability of own-source revenue in regions
that implemented the tax opsen policy is only 12%, which is lower than that in regions that did not
implement the tax opsen, which has a variability of own-source revenue of 20%. This suggests that
the implementation of tax opsen increases the stability of local revenues, thereby reducing the
volatility of annual revenues that can interfere with fiscal planning. In addition, the dependency on
central transfers decreased from 40% to 25% in regions with tax opsen, meaning that these regions
have more capacity to meet fiscal needs from their revenues. This impact is significant, as lower
dependency on the central government creates greater fiscal space for regions to allocate resources
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to priority sectors, such as education, health, and infrastructure, which have a direct impact on
people's welfare (Antonson & Levin, 2020; Wang et al., 2022).
Thus, the application of tax opsen not only serves as an additional source of revenue, but also
acts as a strategic instrument to encourage fiscal independence and regional financial stability in the
long term. These findings provide a strong foundation for the development of tax opsen policies as
part of a more measurable and reliable strategy for increasing local revenue and regional financial
planning.
Conclusion
Based on the results of the study, it can be concluded that the application of the tax opsen has a
significant effect on increasing local revenue (PAD). Regions that apply tax opsen with a certain
percentage show a higher increase in PAD compared to regions that do not apply it or apply tax opsen
in lower amounts. Opsen taxes not only contribute to increasing local revenue but also increase local
fiscal independence, reducing dependence on transfers from the central government.
In addition, the implementation of tax opsen has been shown to support more stable and
predictive local financial planning. With additional revenue from tax opsen, regions can be more
consistent in planning and implementing development programs, which in turn improves the quality
of public services as well as the efficiency of budget allocations. This stability is demonstrated through
lower variability in own-source revenue and reduced dependence on central transfers.
Overall, tax transparency is an effective and strategic instrument for strengthening the local revenue
base and supporting sustainable fiscal planning. The results of this study can serve as a basis for local
governments to consider tax transparency policies as one of the steps to increase PAD and achieve
higher fiscal independence.
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