Journal of Tax Reform
The Role of Taxpayer Awareness in Enhancing Vehicle Tax Compliance in Indonesia: An Attribution Theory Approach
Annathasia P. Erasashanti 1, Yohanes Ferry Cahaya 1, Rizki Yuniarti 1, Muhammad Rifaldi 1, Johan Hendri Prasetyo 2
1 Perbanas Institute, Jakarta, Indonesia
2 Universitas Nusa Mandiri, Jakarta, Indonesia
Abstract
This study explores the dynamics of taxpayer compliance with motor vehicle taxes, shedding light on the intricacies of transport taxation. Focusing on the mediating role of taxpayer awareness, the research employs a quantitative approach with Likert scale measurements. Primary data is gathered from 300 respondents in Bekasi Regency, Indonesia, out of a population of 1,789,548 taxpayers, using accidental sampling. SEM-PLS analysis reveals that adherence to tax rules, system updates, understanding tax intricacies, higher incomes, and taxpayer awareness contribute significantly to enhanced tax compliance within the context of motor vehicle taxation. Notably, the study finds that public education about taxes does not significantly impact compliance in this specific domain. The factors influencing taxpayer awareness encompass tax rules, system upgrades, tax knowledge, public education, and income levels. While taxpayer awareness is linked to system upgrades, tax knowledge, public education, income levels, and compliance, it doesn’t connect with tax rules and compliance in the realm of motor vehicle taxation. The research implications provide valuable guidance specifically tailored to policymakers and tax authorities dealing with transport taxation. Emphasizing the significance of tax penalties, system modernization, and tailored taxpayer awareness programs can foster improved compliance in the motor vehicle taxation domain. Policymakers are urged to reassess the efficacy of tax socialization initiatives in the context of transport taxation, exploring alternative approaches for public tax education in this specific domain. Understanding the nuanced interplay among tax rules, system upgrades, tax knowledge, public education, income levels, taxpayer awareness, and compliance in the realm of motor vehicle taxation can inform targeted interventions for an overall enhancement of tax adherence in this specialized area.
Keywords
taxpayer awareness, tax socialization, tax knowledge, tax system modernization, tax sanctions
JEL classification
H21, H23, H71References
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Acknowledgements
The researcher expresses gratitude to Perbanas Institute and all parties involved in this research.
About Authors
Annathasia P. Erasashanti – S.E., M.Si., CAP, Lecturer in the Accounting Department, Perbanas Institute Jakarta (Jalan Perbanas, Karet Kuningan Setiabudi South Jakarta Indonesia 12940); ORCID: https://orcid.org/0009- 0001-3801-856X; e-mail: erasashanti@perbanas.id
Yohanes Ferry Cahaya – S.E., M.M., Lecturer in the Department of Management, Perbanas Institute Jakarta (Jalan Perbanas, Karet Kuningan Setiabudi South Jakarta Indonesia 12940); ORCID: https://orcid.org/0000-0002-5212-8298; e-mail: ferry@perbanas.id
Rizki Yuniarti – S.E., M.M., Lecturer in the Accounting Department, Perbanas Institute Jakarta (Jalan Perbanas, Karet Kuningan Setiabudi South Jakarta Indonesia 12940); ORCID: https://orcid.org/0009-0009-2595-287X; e-mail: rizki.yuniarti@perbanas.id
Muhammad Rifaldi – S.Ak, Master Student of Department of Accounting, Perbanas Institute, Indonesia (Jl. Perbanas, RT.6/RW.7, Kuningan, Karet Kuningan, Kecamatan Setiabudi, Kota Jakarta Selatan, Daerah Khusus Ibukota Jakarta 12940); ORCID: https://orcid.org/0009-0008-6287-1094; e-mail: muhammad.rifaldi27@perbanas.id
Johan Hendri Prasetyo – S.E., M.M., Lecturer in the Digital Business Department, Universitas Nusa Mandiri (Jalan Raya Jatiwaringin No. 2, Cipinang Melayu, Makasar, East Jakarta 13620); ORCID: https://orcid.org/0000-0003-0514-0945; e-mail: johan.jnp@nusamandiri.ac.id
For citation
Erasashanti A.P., Cahaya Y.F., Yuniarti R., Rifaldi M., Prasetyo J.H. The Role of Taxpayer Awareness in Enhancing Vehicle Tax Compliance in Indonesia: An Attribution Theory Approach. Journal of Tax Reform. 2024;10(1):162–180. doi.org/10.15826/jtr.2024.10.1.163
Article info
Received January 5, 2024; Revised January 27, 2024; Accepted February 10, 2024
DOI: https://doi.org/10.15826/jtr.2024.10.1.163
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