The Effect of Local Taxes and Levies on Local Revenue With Population as a Moderating Variable in City Districts in Bali Province

One of the financial revenue aspects is local revenue which is one of the main financial sources in order to finance the implementation of local government. In Indonesia, there is an imbalance in the income obtained in each region so this study aims to analyze the effect of local taxes and local levies on local own-source revenue (PAD) by considering the moderating role of population based on the perspective of stewardship theory. The results showed that local taxes have a positive but insignificant effect on PAD, which indicates that although local taxes are one of the main sources of revenue, the effectiveness of collection still faces various obstacles such as the level of taxpayer compliance and dependence on central transfers. Meanwhile, local retribution has a positive and significant influence on PAD. In addition, this study found that population size is not able to moderate the effect of local taxes on PAD, while population size is able to moderate the effect of local retribution on PAD with a weakening effect. This suggests that although a large population may increase the potential revenue of user charges, people with higher purchasing power tend to choose private services over public services that are subject to user charges. The implications of this study emphasize the importance of increasing the effectiveness of local fiscal policy by optimizing tax and levy collection, improving the quality of public services, and diversifying revenue sources to strengthen local fiscal independence. By adopting the stewardship theory approach, local governments are expected to increase public trust and encourage sustainable regional development.