Fair Taxes, Better Revenue: A Case Study on Spatial Approaches to Land Taxation in Lebak Regency, Indonesia
Land taxation, mainly the Land and Building Tax (LBT), is a critical revenue source for local governments in Indonesia, yet its contribution remains suboptimal due to inefficiencies in assessment and administration. This study focuses on the Lebak Regency to optimize the Sales Value of Taxable Objec...
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| Format: | Article |
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MDPI AG
2025-01-01
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| Series: | Land |
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| author | Andri Hernandi Irwan Meilano Asep Yusup Saptari Deni Suwardhi Rizqi Abdulharis Alfita P. Handayani Sella L. Nurmaulia Nabila S. E. Putri Ratri Widyastuti Putri Merdekawati Fitri N. Cahyani |
| author_facet | Andri Hernandi Irwan Meilano Asep Yusup Saptari Deni Suwardhi Rizqi Abdulharis Alfita P. Handayani Sella L. Nurmaulia Nabila S. E. Putri Ratri Widyastuti Putri Merdekawati Fitri N. Cahyani |
| author_sort | Andri Hernandi |
| collection | DOAJ |
| description | Land taxation, mainly the Land and Building Tax (LBT), is a critical revenue source for local governments in Indonesia, yet its contribution remains suboptimal due to inefficiencies in assessment and administration. This study focuses on the Lebak Regency to optimize the Sales Value of Taxable Objects (SVTO) assessment, a key determinant of LBT revenue. Using spatial analysis, Land Value Zones (LVZ), and socio-economic data, the research evaluates assessment ratios to identify discrepancies between SVTO and market values. Adjustments to SVTO are proposed based on spatial patterns, such as land use and infrastructure, and the Index of Developing Villages (IDV). Findings reveal significant disparities between assessed and market values, with assessment ratios ranging from 1% to 267%. Simulations indicate potential LBT revenue of IDR 224.7 billion under full compliance, compared to IDR 44.22 billion, the 2024 target. Adjustments based on spatial patterns from land use planning and village development indices enhance equity and accuracy in tax assessments, optimizing local revenues. Despite these improvements, the study’s limitations lie in the lack of community validation for the proposed methodology, which is essential to confirm its practicality and acceptance. Future research should address this gap and explore household-level dynamics, including tax affordability and spending patterns, to enhance policy inclusivity and align taxation systems with local socio-economic realities. |
| format | Article |
| id | doaj-art-e92a79fd665540a4beecba7448b56aaa |
| institution | Kabale University |
| issn | 2073-445X |
| language | English |
| publishDate | 2025-01-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Land |
| spelling | doaj-art-e92a79fd665540a4beecba7448b56aaa2025-01-24T13:38:00ZengMDPI AGLand2073-445X2025-01-0114112510.3390/land14010125Fair Taxes, Better Revenue: A Case Study on Spatial Approaches to Land Taxation in Lebak Regency, IndonesiaAndri Hernandi0Irwan Meilano1Asep Yusup Saptari2Deni Suwardhi3Rizqi Abdulharis4Alfita P. Handayani5Sella L. Nurmaulia6Nabila S. E. Putri7Ratri Widyastuti8Putri Merdekawati9Fitri N. Cahyani10Spatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, IndonesiaSpatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, IndonesiaSpatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, IndonesiaSpatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, IndonesiaSpatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, IndonesiaSpatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, IndonesiaSpatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, IndonesiaSpatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, IndonesiaSpatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, IndonesiaDepartment of Geodesy and Geomatics, Faculty of Earth Sciences and Technology, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, IndonesiaDepartment of Geodesy and Geomatics, Faculty of Earth Sciences and Technology, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, IndonesiaLand taxation, mainly the Land and Building Tax (LBT), is a critical revenue source for local governments in Indonesia, yet its contribution remains suboptimal due to inefficiencies in assessment and administration. This study focuses on the Lebak Regency to optimize the Sales Value of Taxable Objects (SVTO) assessment, a key determinant of LBT revenue. Using spatial analysis, Land Value Zones (LVZ), and socio-economic data, the research evaluates assessment ratios to identify discrepancies between SVTO and market values. Adjustments to SVTO are proposed based on spatial patterns, such as land use and infrastructure, and the Index of Developing Villages (IDV). Findings reveal significant disparities between assessed and market values, with assessment ratios ranging from 1% to 267%. Simulations indicate potential LBT revenue of IDR 224.7 billion under full compliance, compared to IDR 44.22 billion, the 2024 target. Adjustments based on spatial patterns from land use planning and village development indices enhance equity and accuracy in tax assessments, optimizing local revenues. Despite these improvements, the study’s limitations lie in the lack of community validation for the proposed methodology, which is essential to confirm its practicality and acceptance. Future research should address this gap and explore household-level dynamics, including tax affordability and spending patterns, to enhance policy inclusivity and align taxation systems with local socio-economic realities.https://www.mdpi.com/2073-445X/14/1/125land taxationspatial analysissales value of taxable objecttax equityland value zonesIndonesia |
| spellingShingle | Andri Hernandi Irwan Meilano Asep Yusup Saptari Deni Suwardhi Rizqi Abdulharis Alfita P. Handayani Sella L. Nurmaulia Nabila S. E. Putri Ratri Widyastuti Putri Merdekawati Fitri N. Cahyani Fair Taxes, Better Revenue: A Case Study on Spatial Approaches to Land Taxation in Lebak Regency, Indonesia Land land taxation spatial analysis sales value of taxable object tax equity land value zones Indonesia |
| title | Fair Taxes, Better Revenue: A Case Study on Spatial Approaches to Land Taxation in Lebak Regency, Indonesia |
| title_full | Fair Taxes, Better Revenue: A Case Study on Spatial Approaches to Land Taxation in Lebak Regency, Indonesia |
| title_fullStr | Fair Taxes, Better Revenue: A Case Study on Spatial Approaches to Land Taxation in Lebak Regency, Indonesia |
| title_full_unstemmed | Fair Taxes, Better Revenue: A Case Study on Spatial Approaches to Land Taxation in Lebak Regency, Indonesia |
| title_short | Fair Taxes, Better Revenue: A Case Study on Spatial Approaches to Land Taxation in Lebak Regency, Indonesia |
| title_sort | fair taxes better revenue a case study on spatial approaches to land taxation in lebak regency indonesia |
| topic | land taxation spatial analysis sales value of taxable object tax equity land value zones Indonesia |
| url | https://www.mdpi.com/2073-445X/14/1/125 |
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