The Contribution of Motor Vehicle Tax Revenue During the Transition from a Revenue-Sharing Scheme to a Flat-Rate System in Promoting Local Fiscal Autonomy

Abstract

Tax Surcharge (Opsen PKB) contributes to fostering fiscal independence for Manado City during the transition from the Revenue-Sharing Fund (DBH) scheme to the Opsen scheme.  A descriptive qualitative method was employed for this  research.  The findings indicate that the shift from the DBH scheme to the Opsen scheme regarding Motor Vehicle Tax revenue has not been sufficient to render Manado City fiscally independent. This situation arises because the city's Locally-Generated Revenue (PAD) structure remains unable to independently finance regional expenditures, despite the addition of the new tax. Consequently, Manado City remains dependent on central government transfer funds. Furthermore, the Opsen tax ranks fifth among the local taxes managed by Manado City. In conclusion, while the transition to the Opsen scheme provides revenue certainty, it has not yet succeeded in shifting Manado City's status to that of a fiscally independent region.