The impact of motor vehicle tax stimulus (sanction amnesty) for tax compliance

Abstrak

Fiscal independence of regional governments largely depends on their ability to optimize locally generated revenue, particularly from regional taxes. In Jambi Province, the contribution of local own-source revenue remains lower than intergovernmental transfers, while motor vehicle tax (PKB) compliance is relatively low. To address this issue, the provincial government has frequently implemented fiscal stimulus policies in the form of administrative penalty waivers to encourage tax payments. However, repeated implementation of such stimulus may create taxpayer expectations that weaken the deterrent effect of sanctions and reduce long-term compliance. This study aims to examine the effect of administrative penalty waiver stimulus on motor vehicle taxpayer compliance in Jambi Province, while controlling for vehicle characteristics. The study employs a quantitative approach using secondary data on PKB payments in 2020 obtained from the Regional Revenue Agency. The analysis uses Ordinary Least Square (OLS) regression for each vehicle category with robust standard errors. The dependent variable is the tax compliance ratio, measured by payment timeliness (ranging from 0 to 1). The main independent variable is the tax stimulus, proxied by payment delays exceeding two years, while control variables include engine capacity and vehicle production year. The results show that the stimulus has a negative and statistically significant effect on tax compliance across all vehicle categories. The vehicle production year has a positive and significant effect in most categories, indicating that newer vehicles tend to be more compliant, while engine capacity is generally not significant, except for a small negative effect in the jeep category. These findings imply that tax stimulus policies should be implemented selectively and temporarily, accompanied by stronger enforcement and data-driven monitoring to ensure sustainable tax compliance.