The Effect Of Service Quality On Compliance With Paying Land And Building Taxes (PBB) At The Office Of The Village Head Of Ponds, Percut Sei Tuan District

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The Effect of Service Quality on Compliance with Paying Land and Building Taxes (PBB) at the Office of the Village Head of Ponds, Percut Sei Tuan District

Introduction

The payment of Land and Building Tax (PBB) is a crucial source of revenue for local governments in Indonesia. The Office of the Village Head of Ponds, Percut Sei Tuan District, is one of the many local governments that rely on PBB revenue to finance development and welfare programs for the community. However, the compliance rate of taxpayers in paying PBB is often a concern for local governments. This study aims to examine the effect of service quality on taxpayer compliance in paying PBB at the Office of the Village Head of Ponds.

Background

The payment of PBB is a mandatory tax for property owners in Indonesia. The tax is collected by local governments and is used to finance various development and welfare programs. However, the compliance rate of taxpayers in paying PBB is often low, which can result in a significant loss of revenue for local governments. According to the Ministry of Finance, the compliance rate of taxpayers in paying PBB in Indonesia is around 70%. However, the compliance rate can vary significantly depending on the local government.

Literature Review

Previous studies have shown that service quality has a significant effect on taxpayer compliance in paying PBB. According to Rahayu theory, service quality has a direct impact on taxpayer compliance. Service quality refers to the level of satisfaction that taxpayers experience when interacting with the tax office. Taxpayers who experience high levels of satisfaction are more likely to comply with paying PBB.

Methodology

This study uses a quantitative approach with associative methods to examine the relationship between service quality and taxpayer compliance in paying PBB. The study was conducted at the Office of the Village Head of Ponds, Percut Sei Tuan District, and involved 97 respondents, including taxpayers registered at the village head office and employees who work in the office. Data was collected through questionnaires and analyzed using Structural Equation Modeling (SEM) with the Partial Least Square (PLS) program.

Results

The results of the study showed that the quality of service in the village head office was in the medium category, as well as the compliance of taxpayers in paying PBB. The R Square Determination coefficient of 0.677 shows that the service quality affects 67.7% of compliance with paying PBB. The rest, 23.3% is influenced by other factors outside of this study.

Discussion

The findings of this study suggest that improving service quality can be an effective strategy to increase taxpayer compliance in paying PBB. Factors that can affect service quality include:

Hospitality and Professionalism of Officers

Friendly, responsive, and professional officers can increase the trust and satisfaction of taxpayers. Taxpayers who experience high levels of satisfaction are more likely to comply with paying PBB.

Ease of Access and Information

Taxpayers need to be given ease in accessing information about PBB and payment procedures. Provision of information that is clear, easy to understand, and available through various channels (websites, social media, etc.) can increase compliance.

Transparency and Accountability

Taxpayers need to know how the management and use of PBB funds. Transparency and accountability in the management of PBB funds can increase the trust and compliance of taxpayers.

Easy and Practical Payment Systems

Taxpayers need to be given an easy and practical selection of payment methods, such as online payments, mobile banking, and so forth.

Conclusion

Increasing compliance with paying PBB is important to increase regional income. Revenue from PBB can be used to finance development and welfare programs for the community in the village of pool. Therefore, the Village Head Office Pool needs to continue to improve the quality of his services to encourage taxpayer compliance in paying PBB.

Recommendations

Based on the findings of this study, the following recommendations are made:

  • Improve the quality of service in the village head office by increasing the hospitality and professionalism of officers.
  • Provide easy access to information about PBB and payment procedures.
  • Increase transparency and accountability in the management of PBB funds.
  • Provide easy and practical payment systems for taxpayers.

By implementing these recommendations, the Village Head Office Pool can increase taxpayer compliance in paying PBB and improve the overall quality of service in the office.
Frequently Asked Questions (FAQs) about the Effect of Service Quality on Compliance with Paying Land and Building Taxes (PBB) at the Office of the Village Head of Ponds, Percut Sei Tuan District

Q: What is the main objective of this study?

A: The main objective of this study is to examine the effect of service quality on taxpayer compliance in paying Land and Building Tax (PBB) at the Office of the Village Head of Ponds, Percut Sei Tuan District.

Q: What is the significance of this study?

A: This study is significant because it provides insights into the relationship between service quality and taxpayer compliance in paying PBB. The findings of this study can be used to improve the quality of service in the village head office and increase taxpayer compliance in paying PBB.

Q: What are the factors that affect service quality?

A: The factors that affect service quality include:

  • Hospitality and professionalism of officers
  • Ease of access and information
  • Transparency and accountability
  • Easy and practical payment systems

Q: How can the village head office improve service quality?

A: The village head office can improve service quality by:

  • Increasing the hospitality and professionalism of officers
  • Providing easy access to information about PBB and payment procedures
  • Increasing transparency and accountability in the management of PBB funds
  • Providing easy and practical payment systems for taxpayers

Q: What are the benefits of improving service quality?

A: The benefits of improving service quality include:

  • Increased taxpayer compliance in paying PBB
  • Improved overall quality of service in the office
  • Increased revenue for the village head office
  • Improved reputation of the village head office

Q: How can taxpayers contribute to improving service quality?

A: Taxpayers can contribute to improving service quality by:

  • Providing feedback to the village head office about their experiences with the office
  • Participating in surveys and research studies about service quality
  • Encouraging the village head office to improve service quality

Q: What are the implications of this study for policymakers?

A: The implications of this study for policymakers are:

  • The need to improve service quality in the village head office to increase taxpayer compliance in paying PBB
  • The importance of transparency and accountability in the management of PBB funds
  • The need to provide easy and practical payment systems for taxpayers

Q: What are the limitations of this study?

A: The limitations of this study are:

  • The study was conducted at a single village head office, which may limit the generalizability of the findings
  • The study only examined the relationship between service quality and taxpayer compliance in paying PBB, and did not examine other factors that may affect compliance.

Q: What are the future research directions?

A: Future research directions include:

  • Examining the relationship between service quality and taxpayer compliance in other local governments
  • Investigating the impact of service quality on other outcomes, such as revenue collection and economic growth
  • Developing and testing interventions to improve service quality in local governments.