An analysis of the implementation of land and building taxes in rural and urban areas on toll roads subsequent to transfer of authority; its implications for investors

Intan Fitri Permatasari, Haula Rosdiana, Lucas Filberto Sardjono

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

The transferal of taxing power and the discretion given to the local government in determining the Land and Building Tax Imposition Base (NJOP) has given rise to problems with investments in infrastructure development, especially in investments in toll roads. Such roads pass through more than one regency/municipality; therefore, business actors must deal with different regulations for Land and Building Taxes of Rural and Urban Areas (LBTRUAs). Through data-collection techniques, literature and documentation review, and in-depth interviews, this study shows that toll-road investments are high risk. They are objects for LBTRUAs and have a mobile tax base. The appraisal and provision stages of NJOP are crucial, because they determine the amount of LBTRUAs, which results in costs for toll-road business agencies. In general, the findings from the field show that since the devolution, the amount of LBTRUAs has tended to rise. As a tax levied within the official assessment system, the harmonization of the tax base and tax rate on toll roads as objects of LBTRUAs is necessary to create certainty and a business climate that is conducive to investment.

Original languageEnglish
Title of host publicationProceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019
Subtitle of host publicationEducation Excellence and Innovation Management through Vision 2020
EditorsKhalid S. Soliman
PublisherInternational Business Information Management Association, IBIMA
Pages7547-7555
Number of pages9
ISBN (Electronic)9780999855126
Publication statusPublished - 1 Jan 2019
Event33rd International Business Information Management Association Conference: Education Excellence and Innovation Management through Vision 2020, IBIMA 2019 - Granada, Spain
Duration: 10 Apr 201911 Apr 2019

Publication series

NameProceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019: Education Excellence and Innovation Management through Vision 2020

Conference

Conference33rd International Business Information Management Association Conference: Education Excellence and Innovation Management through Vision 2020, IBIMA 2019
CountrySpain
CityGranada
Period10/04/1911/04/19

Keywords

  • NJOP
  • Taxing power
  • Toll road

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