Tax Policy Design for Homestay in Tourism Village: Supply Side Tax Policy Perspectives

The imposition of tax in business activities is crucial because taxes that are levies can both increase the costs or reduce income. Therefore, the tax policy on a homestay in tourism village needs to be evaluated so that the sustainability of homestay businesses in the tourism villages can be sustainable. This research describes the posture of taxation levies in the homestay business in tourism villages and evaluates their implications for business actors' productivity. This research uses the constructivist paradigm with data collection methods through literature studies, documentation studies, focus group discussion, and observation. This research concludes that it is necessary to design tax policies that are oriented towards increasing revenue on the business side, which does not distort homestay business productivity in the tourism village. The taxation posture for homestay businesses in tourism villages is still a heavy burden and has not been used as an instrument to create justice or show partiality toward MSMEs holistically and impartially. Alternative tax policy designs that can be chosen by the government are through levelling tariffs, threshold policies and presumptive tax policies that support pro-business cash flow tax.