The Effect of Swiftlet Nest Tax on Local Own-Source Revenue in Five Regencies in The Northern Region of West Java Province, Indonesia Widya Febriari Anita (a), Rabhi Fathan Muhammad(a*), Rulyanti Susi Wardhani (a)
a: Faculty of Economics, Universitas Singaperbangsa Karawang, Karawang 413361, Indonesia
*rabhifm[at]fe.unsika.ac.id
Abstract
The swiftlet^s nest tax has excellent potential to be explored, considering that the northern West Java Province region is suitable for producing swiftlet nests. Increased swiftlet^s nest tax revenue is expected to encourage a rise in Local Own-Source Revenue to support sustainable development in these regencies. This study^s purpose is to analyze the effect of the swiftlet^s nest tax on the Local Own-Source Revenue of the regencies in the northern region of West Java Province. Following the literature search results, there are no reports of the research on swiftlet nest tax related to local Own-Source Revenue utilizing the unit of analysis based on a region within the province. Accordingly, the study proposes a different thing of exploring the relationship between the two variables with a broader unit of analysis, namely a region with various regencies within a province. Using the unit of analysis is expected to produce recommendations for improving revenue from the swiftlet nest tax that each regency government in the same region faces. The study employs econometric methods through analysis of the panel data regression model. The results showed that the swiftlet nest tax revenue in these regencies after the implementation of Law Number 28 of 2009 concerning Local Taxes and Retributions still has not yet produced a real contribution to Local Own-Source Revenue. Efforts are needed to raise the tax revenue, among others, by collecting data on swiftlet nest business owners, sorting the businesses based on productivity, and socializing and educating the business owners.
Keywords: Natural Resource Tax, Fiscal Decentralization, Panel Data Model
