Formulation of Regional Tax Intensification Strategies with Game Theory to Increase Financial Strength Khaira Amalia Fachrudin, Elisabeth Siahaan, Imam Faisal Pane
Universitas Sumatera Utara
Abstract
Regional taxes levied with self assessment system may cause moral hazard problems. The people of Medan City are multi ethnic and have a slightly different behaviour comparing to people in other cities. Regional Tax and Retribution Management Agency (RTRMA) in Medan should create a new strategy for tax intensification, one of which is to reduce this problems. This study aims to make modeling of tax intensification in Medan City area by using game theory. This study uses secondary data which comprise main strategies of RTRMA in provincial capital cities in Indonesia. From the data, a model that optimizes the expected value for RTRMA and taxpayers in Medan is created. This model helps to formulate policy and strategy to increase hotel, restaurant, parking and leisure tax revenue in Medan.
Keywords: tax intensification, game theory, financial strength
