Fiscal Justice and Local Tax Resistance: The Distributional Effects of PBB-P2 Increases in Pati Regency, Indonesia

Muhammad Lukman Hakim

doi:10.65815/ke0nah09

Authors

Muhammad Lukman Hakim Universitas Negeri Jakarta Author

DOI:

https://doi.org/10.65815/ke0nah09

Keywords:

fiscal justice, PBB-P2, local taxation, tax resistance, distributive justice

Abstract

Local taxation is an essential instrument of fiscal decentralization, yet increases in local tax burdens may generate distributive tensions when taxpayers perceive the policy as disproportionate to their economic capacity and the quality of public services received. This study examines the fiscal justice implications of increases in Land and Building Tax on Rural and Urban Areas (PBB-P2) in Pati Regency, Indonesia, with particular attention to local tax resistance and distributional effects. The study employs a qualitative case-study approach combining regulatory analysis, local government policy documents, public statements, and secondary socioeconomic data. The analysis focuses on the relationship between tax burden, household economic capacity, administrative legitimacy, and perceptions of distributive and procedural justice. The study argues that local tax resistance should not be interpreted solely as resistance to taxation, but also as a potential indicator of perceived fiscal injustice. Particular attention is given to whether tax assessments adequately reflect differences in property values, household income, and economic vulnerability. The findings are expected to demonstrate the importance of incorporating distributional considerations and procedural fairness into local tax reform. The study contributes to the literature by connecting fiscal decentralization with economic justice and providing evidence from an Indonesian local-government context.

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