The effect of agricultural taxes and local agricultural policies onenhancing food security and environmental sustainability

BACKGROUND AND OBJECTIVES: Indonesia is currently working towards sustainability in line with Sustainable Development Goal ۲ (Zero Hunger). By ۲۰۵۰, the global human population is projected to reach ۱۰.۸ billion, intensifying pressure on food production systems. The study objectives were to examine the biophysical factors, production inputs, economic conditions, socio-technological factors, agricultural business management, and agricultural tax policies regional agricultural policies and, ultimately, agricultural productivity.METHODS: This quantitative research used questionnaires distributed to ۲۰۰ farmers in Surabaya. The instrument used a one-to-five Likert scale covering biophysical factors, economic factors, tax policy, tax morale, and agricultural productivity. Data was analyzed using partial least squares-structural equation modeling version ۳. This analysis followed three steps: outer model testing to assess convergent validity and discriminant validity, reliability testing, and inner model testing through bootstrapping for the coefficient of determination, the effect size, and hypothesis significance. Hypothesis significance was determined using t-statistic values of at least ۱.۹۶ and p-values of no more than ۰.۰۵.FINDINGS: Four hypotheses were rejected: economic factor on regional agricultural policy (p-value ۰.۵۵۷), agricultural taxation policy on tax morale (p-value ۰.۰۷۲), tax awareness on agricultural productivity (p-value ۰.۰۵۸), and tax morale on agricultural productivity (p-value ۰.۲۰۸). Biophysical factors (beta coefficient of ۰.۲۵۱, probability value of ۰.۰۰۰), production inputs (beta coefficient of ۰.۲۵۳, probability value of ۰.۰۰۲), and agricultural business management (beta coefficient of ۰.۲۲۸, probability value of ۰.۰۰۰) significantly affect regional agricultural policy. Agricultural tax policy significantly affects tax awareness (beta coefficient of -۰.۲۲۹, probability value of ۰.۰۰۰), while tax administration efficiency also significantly affects tax awareness (beta coefficient of -۰.۳۴۵, probability value of ۰.۰۰۰) and tax morale (beta coefficient of -۰.۶۳۴, probability value of ۰.۰۰۰), since clarity on procedures, benefits, and regulations fosters public responsibility and awareness of taxpayer obligations and rights.CONCLUSION: Increasing agricultural productivity requires strategies that incorporate farmer input, develop farmer-friendly policies, provide education on agricultural tax obligations and benefits, and foster collaboration between stakeholders and the government. Regional agricultural policies and tax awareness significantly influence agricultural productivity. These findings offer practical insights for policymakers aiming to strengthen agricultural governance and tax compliance frameworks in support of sustainable rural development.

کلیدواژه ها:

Agricultural productivity ، Agricultural tax policy ، Environmental sustainability ، Food security ، Sustainable development goals (SDGs).