The Effect of Tax Digitisation on Local Fiscal Accountability and Transparency (Case Study: The South Sumatra Provincial Revenue Agency, Palembang City)

Abstract

This study aims to analyse the impact of tax digitalisation on improving fiscal accountability and transparency at the Regional Revenue Agency (Dispenda) of South Sumatra Province, Palembang City. The research method uses a quantitative approach through literature review and secondary data analysis for the period 2020–2024. Tax digitalisation in Palembang City is realised through the implementation of the e-Tax, e-Samsat, and Coretax systems, which are integrated into the Palembang Smart City programme. The results show that tax digitalisation has a positive and significant effect on improving fiscal accountability and public transparency. The regression coefficient value (β = 0.742; p = 0.008) indicates that every 1% increase in the level of digitalisation can increase the fiscal accountability index by 0.74 points. The implementation of digitalisation has also increased taxpayer compliance from 68.4% to 84.7% over the past five years. However, there are still obstacles in the form of limited digital literacy, information technology infrastructure, and the competence of tax officials. These findings reinforce that digitalisation is an important instrument in strengthening data-based fiscal governance and realising transparent and accountable local government.