Proportionality and Fairness in Determining PBB-P2 Rates by Regional Governments: A Constitutional Perspective and Protection of Taxpayer Rights
Published:
2026-11-04Abstract
This article examines the proportionality and fairness of local government policies in establishing Rural and Urban Land and Building Tax (PBB-P2) with Banyuwangi Regency as a case study. The research problem stems from the character of PBB-P2 as an objective tax based on property value, so that increases in the Taxable Object Sales Value (NJOP), the percentage of the imposition base, or the rate can increase the tax burden faster than the taxpayer's actual ability to pay. This research addresses three questions: the constitutional limits of regional fiscal discretion, the proportionality of the Banyuwangi PBB-P2 design for the 2024-2026 period, and the form of taxpayer rights protection that should be available in a democratic rule of law. The research uses normative legal methods with a comparative statutory, conceptual, case, and policy approach. Primary legal materials include the 1945 Constitution of the Republic of Indonesia, Law Number 1 of 2022, Government Regulation Number 35 of 2023, Regulation of the Minister of Finance Number 85 of 2024, Regional Regulation of Banyuwangi Regency Number 1 of 2024 as amended by Regional Regulation Number 3 of 2025, implementing regulations, and the Regent's Decree of 2026 concerning the percentage of the imposition base, stimulus, exemption, and determination of PBB-P2. The results of the study indicate that progressive tariffs, differentiation of the percentage of the imposition base, stimulus of around IDR 60.0 billion, and exemption for community groups with low welfare levels are real efforts to realize distributive justice. However, constitutional justice does not stop at formal legality. This article offers a structured proportionality test model that includes legitimate objectives, appropriateness, necessity, fair balance, transparency, participation, and effective recovery. The academic contribution is a rights-based model for evaluating regional property tax policies that balance fiscal autonomy with taxpayer protection.
Keywords:
proportionality PBB-P2 tax justice constitutionalism taxpayer rightsReferences
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