The Effectiveness of Motor Vehicle Tax Reduction Program in Increasing Local Revenue

The tax Reduction program aims to increase taxpayer compliance and regional tax revenues by eliminating administrative sanctions for taxpayers in arrears. This research evaluates the effectiveness of the motor vehicle tax reduction program in increasing Original Regional Income (PAD) at the South Surabaya SAMSAT Joint Office from an Islamic economic perspective. With a quantitative descriptive approach, data is obtained through documentation and interviews and analysed using descriptive statistics. The research shows that the motor vehicle tax reduction program significantly increases PAD. From an Islamic economic perspective, this policy is fair and beneficial because it allows people to pay taxes without fines. However, further evaluation is required to ensure ongoing tax compliance. This research adds to the Islamic economics literature by examining local tax policies and providing insight for local governments in designing effective and fair fiscal policies.