Comparison of Profit Sharing Schemes and Opsen on PKB and BBNKB Receipts in East Java

This study analyzes the impact of the implementation of Opsen Motor Vehicle Tax (Pajak Kendaraan Bermotor/PKB) and Motor Vehicle Transfer Fee (Bea Balik Nama Kendaraan Bermotor/BBNKBP) on regional revenues of districts/cities in East Java. Using a quantitative approach and comparative analysis method, this study compares the revenue sharing scheme with Opsen based on the realization data of PKB and BBNKB in 2023. The simulation results show that the implementation of Opsen increases district/city revenues in aggregate by 10.08%, but decreases provincial revenues by IDR 0.41 trillion. The city of Surabaya experienced the highest increase in revenue, which was 73.25%, while Pacitan experienced the deepest decline. This difference is due to the number of motor vehicles registered in each region. This has the potential to cause horizontal income inequality between regions. However, these results are in line with the objectives of fiscal decentralization, namely strengthening local taxing power. However, an appropriate cost-sharing mechanism is needed to maintain the quality of PKB and BBNKB collection services. This study also found that the results differ from previous studies which concluded that Opsen always significantly increases regional revenues. These findings provide important implications for designing fairer and more sustainable fiscal policies at the regional level.