Bali Vehicle Tax Amnesty Boosts Revenue but Raises Compliance Concerns, Study Finds
A 2026 study by Gusti Ayu Komang Widiantari, Ni Luh Putu Widyantari, and I Wayan Sutrisna from the Master of Public Administration Program at Mahendradatta University Graduate School reveals that Bali’s motor vehicle tax amnesty policy has significantly increased regional revenue in Karangasem Regency, but may weaken long-term taxpayer compliance. The research, published in the International Journal of Contemporary Sciences, highlights both the immediate fiscal success and emerging behavioral risks tied to the policy.
Motor vehicle tax is one of the largest contributors to local government income in Indonesia. In Bali, where vehicle ownership continues to grow, the provincial government introduced a tax amnesty under Governor Regulation No. 40 of 2025. The policy removes administrative penalties for late payments, aiming to encourage taxpayers with arrears to settle their obligations. The findings matter because local governments depend heavily on this revenue to fund infrastructure and public services.
Background: A Popular but Controversial Fiscal Tool
Tax amnesty programs have long been used across Indonesia to improve short-term revenue collection. At the regional level, motor vehicle tax amnesty programs have become increasingly common since 2022. These programs are designed not only to recover unpaid taxes but also to rebuild relationships between taxpayers and government institutions.
However, policymakers face a key dilemma: while amnesty programs can quickly boost revenue, they may also create a pattern where taxpayers delay payments in anticipation of future amnesties. This tension is central to the study conducted in Karangasem Regency.
Methodology: Field-Based Case Study at SAMSAT Karangasem
The research team used a qualitative case study approach, focusing on the SAMSAT Karangasem office, which handles integrated vehicle tax services. Data was collected between January and March 2026 through:
- In-depth interviews with officials, staff, and taxpayers
- Direct observation of service processes
- Analysis of official tax revenue reports
The researchers applied an interactive analysis model, examining how communication, resources, institutional behavior, and bureaucratic structure influenced policy implementation.
Key Findings: Strong Revenue Gains, Mixed Compliance Results
The study found that the tax amnesty policy was highly effective in increasing short-term revenue:
- Revenue exceeded targets, reaching 110.61% of the planned target
- Tax arrears declined significantly during the program period
- Public participation increased due to financial incentives
Several factors contributed to this success:
- Effective communication, including WhatsApp blast campaigns and social media outreach
- Strong inter-agency coordination between local government, police, and tax offices
- Accessible payment systems, including QRIS and bank transfers
However, the study also identified critical weaknesses:
- Taxpayer compliance dropped from 70% in 2024 to 65% in 2025
- Many taxpayers delayed payments, expecting future amnesty programs
- Information about the program did not reach all communities equally
One taxpayer interviewed in the study reported a lack of awareness about the policy, stating that no information was received through social media or local community channels.
Real-World Impact: Short-Term Gains vs Long-Term Risks
The findings suggest that while the policy successfully increases revenue in the short term, it may undermine long-term fiscal discipline. The concept of “moral hazard” emerges as a key concern, where taxpayers intentionally delay payments in anticipation of future penalties being waived.
According to the researchers, the policy “has not been fully able to build sustainable compliance,” indicating that financial incentives alone are insufficient to change long-term taxpayer behavior.
For policymakers, this creates a strategic challenge:
- Positive impact: Immediate increase in local revenue and reduced arrears
- Negative risk: Dependency on amnesty programs and declining voluntary compliance
Policy Implications: Need for Balanced Strategy
The study recommends that tax amnesty policies should not be used as routine instruments. Instead, they should be combined with:
- Continuous public education on tax obligations
- Improved service quality at SAMSAT offices
- Stronger enforcement of tax regulations
- Better data systems and outreach strategies
The researchers emphasize that sustainable revenue growth depends on building a culture of compliance, not just offering temporary relief.
As the authors explain, policies must balance incentives with accountability to ensure long-term effectiveness. Without this balance, repeated amnesty programs could weaken the overall tax system.
Author Insight
The research team from Mahendradatta University highlights that successful public policy implementation depends on four key factors: communication, resources, implementer attitude, and bureaucratic structure. These elements must work together to achieve both efficiency and long-term impact.
Author Profiles
- Gusti Ayu Komang Widiantari, MPA – Public administration researcher specializing in regional fiscal policy, Mahendradatta University
- Ni Luh Putu Widyantari, MPA – Lecturer and researcher in public policy and governance, Mahendradatta University
- I Wayan Sutrisna, MPA – Academic in public administration with expertise in local government management, Mahendradatta University
0 Komentar