The Effect of the tax Amolishment Program on Taxpayers' Awareness and Compliance in Paying Motor Vehicle Taxes at PT Jasa Raharja

Abstract

Taxes are a key source of state revenue, used to finance various development programs and public services that are crucial to a nation's progress. Motor vehicle tax, as a type of regional tax, plays a strategic role in supporting financing for critical sectors such as infrastructure, transportation, and social services. However, successful tax collection depends heavily on public awareness and compliance with their tax obligations. Taxpayer awareness reflects public understanding of the importance of paying taxes as a form of participation in development. Meanwhile, taxpayer compliance refers to the ability and willingness of individuals or businesses to fulfill their tax obligations in accordance with applicable regulations, including timely payment of motor vehicle taxes (Rahayu, 2019). Low levels of public awareness and compliance are key challenges to optimizing motor vehicle tax revenue in Indonesia. Data from the West Sumatra Samsat (Vehicle Tax Office) in 2023 showed that motor vehicle taxpayer compliance was only 65%, far below the national target of 85%. Of the 2.3 million motor vehicles registered in the province, approximately 805,000 (35%) were in tax arrears, with total arrears reaching Rp 427 billion. This high arrears rate reflects a lack of public awareness of the importance of paying motor vehicle taxes as a form of social and legal responsibility. To address this issue, local governments often implement motor vehicle tax amnesty programs. These programs provide relief by eliminating tax penalties for delinquent taxpayers, hoping to encourage them to settle their outstanding payments promptly. In West Sumatra, the tax amnesty program implemented in 2022 only reached 23% of delinquent taxpayers, far below the expected target of 60%. Low participation in this program indicates obstacles such as lack of public awareness, limited access, or low public trust in the policy. For PT Jasa Raharja, a state-owned enterprise that manages traffic accident insurance funds, motor vehicle taxpayer compliance significantly impacts the company's revenue. This is because motor vehicle tax contributions support the sustainability of the social security program managed by PT Jasa Raharja. A decline in taxpayer compliance can directly impact the company's revenue performance, as seen in 2023, when PT Jasa Raharja's revenue decreased by 12% compared to the previous year. Therefore, this study aims to analyze the effect of the motor vehicle tax amnesty program on taxpayer awareness and compliance in paying motor vehicle tax at PT Jasa Raharja. Through this study, it is hoped that a deeper understanding of how the amnesty policy can encourage increased taxpayer awareness and compliance will be gained, as well as providing strategic recommendations for the government and related institutions to increase motor vehicle tax revenue.