Yogyakarta Immediately Make Regional Tax And Retribution Regulations

ILLUSTRATION ANTARA

YOGYAKARTA - The Provincial Government of the Special Region of Yogyakarta (DIY) will soon make a Regional Regulation concerning Regional Taxes and Regional Levies as a follow-up to Law Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments (HKPD).

"We will immediately follow up by establishing a regional regulation regarding regional taxes and regional fees as a follow-up to the enactment of the HKPD Law," said Acting Assistant for Government and General Administration of the DIY Regional Secretariat Beny Suharsono quoted by ANTARA, Thursday, February 9.

Beny said regional taxes and fees are one source of regional income.

According to him, until now the balancing fund is still the mainstay of the DIY Regional Government in meeting the increasing regional fiscal needs.

The proportion of balancing funds, said Beny, dominated DIY's income from 2016 to 2020 with amounts that tended to fluctuate.

This indicates DIY's fiscal dependence on the center and DIY's fiscal independence has not yet been realized.

Beny hopes that the passing of Law Number 1 of 2022 concerning HKPD by the DPR RI will be able to have a positive impact on regional original income (PAD).

"With this HKPD Law, the government can give hope to local governments to increase their PAD and tax revenues with tax incentives or with the realization of taxation," said Beny.

Meanwhile, Deputy Chairperson III BULD DPD Abdurrahman Abubakar Bahmid said the existence of the HKPD Law was formed as a step to create an effective and efficient allocation of national resources and to regulate the management of fair, harmonious, and accountable financial relations.

The regulation, he said, regulates the pattern of allocation of state spending that is channeled to the regions in carrying out government affairs which are the authority of the regions in the form of transfers to the regions (TKD), regional debt financing, APBD control, and tax management in the regions.

On the basis of this law, the authority to determine the amount of taxes and fees has been delegated to regional governments.

"Hopefully, through the implementation of this law, it can open space for the realization of improving the quality of public services and people's welfare through strengthening fiscal decentralization," said Abdurrahman.