The Effect of Tax Fine Forgiveness and Public Awareness on Public Interest in Paying Motor Vehicle Taxes in Medan City

Abstract

The tax bleaching program is a government program that aims to help ease the burden on taxpayers who are in arrears by eliminating motor vehicle tax arrears fines. The main mission of this program is to reduce motor vehicle tax arrears in Medan City. This program has been running since 2018 and currently the Tax Bleaching Program has been implemented throughout Indonesia, one of which is in the city of Medan. This study aims to see the effect of Tax Bleaching and Public Awareness on Public Interest in Paying Motor Vehicle Tax in Medan City. The type of research used in this study is associative quantitative. The data used in this study was primary data by distributing questionnaires to 100 respondents who participated in the tax bleaching program in Medan City. The variables used are Tax Bleaching Program (X1), Public Awareness (X2), and Public Interest in Paying Taxes (Y). Data analysis used multiple linear regression models using statistical software called Smart Partial Least Square (PLS). The results of this study show that Tax Bleaching partially has a significant effect on Public Interest in Paying Taxes, Public Awareness partially has a significant effect on Public Interest in Paying Taxes, and simultaneously Tax Bleaching and Public Awareness have a significant effect on People's Interest in Paying Taxes.