Analysis of Taxpayer Compliance, Effectiveness, and Contribution of Surface Water Tax Collection in Increasing Regional Revenue in North Sulawesi Province

Abstract

Surface water tax is one of the important sources of revenue for financing regional development. This tax is imposed on surface water extraction or utilization activities by certain parties. This study uses a descriptive qualitative approach with data collection techniques through interviews and documentation to analyze the level of taxpayer compliance, effectiveness, and contribution to local original income in North Sulawesi Province. The results of the study show that taxpayer compliance is relatively high and the collection of surface water taxes has been very effective. However, its contribution to the region's original revenue is still very low because the number of taxpayers is limited and supervision is not optimal. Therefore, local governments need to increase the use of this tax potential so that their contribution to PAD becomes more significant.