Community-Based Fiscal Governance and Restaurant Tax Compliance in Supporting Local Revenue Sustainability

Masyitah; Andi Muhammad Ishak Ismail; M. Akbar

Authors

Masyitah Institut Teknologi Bisnis dan Administrasi Al Gazali Barru, Indonesia
Andi Muhammad Ishak Ismail Institut Teknologi Bisnis dan Administrasi Al Gazali Barru, Indonesia
M. Akbar Institut Teknologi Bisnis dan Administrasi Al Gazali Barru, Indonesia

Keywords:

Collaborative Governance, Community Participation, Fiscal Governance, Local Revenue Sustainability, Restaurant Tax Compliance

Abstract

This study examines the implementation of community-based fiscal governance in strengthening restaurant tax compliance to support sustainable local revenue generation in developing regions. The research addresses persistent challenges in local tax administration, including low taxpayer compliance, weak supervision, fragmented business data, and limited public trust in fiscal governance. Conducted in Barru Regency, Indonesia, the study investigates government strategies for participatory fiscal management and explores the relationship between collaborative governance, community engagement, and taxpayer compliance. This research employed a qualitative descriptive case study approach. Data were collected through in-depth interviews, field observations, documentation, and policy analysis involving local revenue officials, tax supervisors, restaurant owners, and community representatives selected through purposive sampling. Data analysis followed an interactive model consisting of data reduction, data display, conclusion drawing, and verification, while validity was ensured through triangulation and member checking. The findings reveal that restaurant tax compliance is shaped not only by administrative enforcement and digital taxation systems, but also by trust-building, participatory socialization, and collaborative relationships between government institutions and business communities. The implementation of Mobile Point-of-Sale (MPOS) technology improved transaction transparency, while community participation strengthened voluntary compliance among taxpayers. Nevertheless, low tax literacy and public distrust remain significant barriers to sustainable fiscal optimization. The study proposes a community-based fiscal governance framework integrating digital governance, collaborative governance, and community participation to enhance local fiscal sustainability.

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