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2. Local taxes, are taxes collected by local governments. Local tax is one of local government revenue sources.
Example: Tax spectacle, advertisement tax, PKB Motor Vehicle Tax, UN dues cleanliness, parking levies.
c. Types of taxes by their nature: 1. Subjective tax, is a tax that pay attention to the condition of the
taxpayer. In this case there must be a objective reasons in determining the amount of tax that directly related to the ability of
taxpayers to pay. Example: Income Tax.
2. Objective tax, is a tax based upon the object itself regardless of the taxpayer.
Example: VAT, Land and Building tax, VAT-duty.
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Figure 2.1 Type of Tax
Source: Data are processed
3. Tax Function
Tax has two functions as follows:
a. Revenue function Budgetary
Tax have budgeter function means taxes is one of revenue to finance both routine and development expenditures, as a source of
state finance, the government attempted to put as much money for the state treasury Resmi, 2009:3.
b. Set function Regulator
Tax has a regulatory function, meaning that taxes as a gauge set or fulfilling governments policies in social and economic sector, as
well as achieving certain objectives outside of the financial sector Resmi, 2009:3. For example: the imposition of higher taxes on
Type of Tax
Based on warrant parties
Based on collect parties
Based on characteristic
Direct Tax
Indirect tax
State tax
Local tax
Subjective tax
Objective tax
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liquor, so that sales can be controlled. Similarly the excise duty on cigarettes.
4. Tax Rates
Tax rate is a measure or standard tax collection. There are four types of tax rates, the proportional rate, fixed rate, progressive rates, and digressive
rates Waluyo, 2006:56.
a. Proportional rate
The form of a fixed percentage rate to any amount that is taxable, so the amount of tax payable proportional to the amount of value that is
taxable.
b. Fixed rates
Rates form of a fixed amount against any amount that is taxable, so the amount of tax payable is fixed.
c. Progressive rates
Percentage rates used increase substantially if the amount taxed increases.
d. Digressive rates
The percentage rate used smaller when the greater amount taxed.
5. Taxpayers
Understanding of Taxpayer under Law 16 of 2000 on General Provisions and Tax Procedures Article 1 paragraph 1, namely: Taxpayer
is an individual or entity under the provisions of the tax legislation is
