The Effectiveness of Using Electronic Tax Notification Letters in Increasing Local Revenue in Nganjuk Regency, Indonesia

Abstract

Background: The increasing need for local governments to optimize Regional Original Revenue (PAD) has driven various innovations, one of which is the digitalization of the taxation system. A form of this digitalization is the use of the electronic Tax Due Notification Letter (e-SPPT) in managing the Rural and Urban Land and Building Tax (PBB-P2). However, PBB-P2 payments by taxpayers are still often delayed due to the suboptimal distribution of SPPT. Purpose: This study aims to determine the effectiveness of eSPPT usage in increasing PAD in Nganjuk Regency. Method: The research uses a descriptive qualitative approach. Data collection was conducted through semi-structured interviews and documentation. Data analysis techniques included data reduction, data presentation, and drawing conclusions. The theory used is the Effectiveness Theory by Delone and McLean, which includes the dimensions of System Quality, Information Quality, Service Quality, Use, User Satisfaction, and Net Benefits. Result: The results show the positive responses from both employees and the community. The e-SPPT system has proven effective in facilitating access to and delivery of tax services. However, the low revenue from PBB-P2 is due to poor taxpayer compliance and limited outreach to taxpayers, so its contribution to PAD is still not optimal. Factors affecting the effectiveness of e-SPPT usage include the community’s level of digital literacy, availability of technological infrastructure, outreach by Bapenda, and the level of taxpayer compliance. Nganjuk Regency has made various efforts, such as increasing e-SPPT outreach to villages, providing training for village officials, and expanding access to digital tax services to encourage public participation and compliance in paying local taxes. Conclusion: This study concludes that the implementation of electronic tax notification letters (e-SPPT) has been effective in increasing local revenue in Nganjuk Regency.