"http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> Strategies for increasing tax revenue in tourism sector | Djulius | Economic Journal of Emerging Markets

Strategies for increasing tax revenue in tourism sector

Horas Djulius(1),
(1) Universitas Pasundan

Abstract


This study examines taxpayers considerations to fulfill their obligations since law enforcement and tax administration improvement were not adequate to explain the gap between actual tax and its target. A survey was conducted to hotel, restaurant and tourist destination managers in Bandung since one-third of local taxes derived from the tourism sector. We use a probit model to clarify the influence of religious activities, trust in government institutions, public services, people's pride, pro-democratic attitude, to taxpayer morality. The study concludes that taxpayers in the tourism sector have a higher local tax morality than central tax morality, and only the public services which has a consistent and significant impact on both tax moralities. This means that local governments and central government can develop improved strategies to increase revenue from tourism sector by providing better public service, which directly or indirectly enhances the tourism sector performance.

Keywords


tax morale, tax complience, public service, ordered probit

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Economic Journal of Emerging Markets (EJEM)
ISSN 2086-3128 (print), ISSN 2502-180X (online)
Published by:
Center for Economic Studies, Department of Economics,
Universitas Islam Indonesia, Indonesia.

Creative Commons License
EJEM by http://journal.uii.ac.id/index.php/JEP/ is licensed under a Creative Commons Attribution 4.0 International License.