<![CDATA[This study aims to analyze the level of understanding and compliance of Micro, Small, and Medium Enterprises (MSMEs) regarding local taxes in Pamekasan Regency following the enactment of Law Number 1 of 2022 on Financial Relations between the Central Government and Regional Governments. The research employed a descriptive qualitative method, utilizing in-depth interviews and observations with MSME actors in the food and beverage sector. The findings indicate that MSME actors' understanding of local taxes remains at a low to moderate level, particularly concerning the types, functions, procedures, and penalties associated with taxation. Tax payment compliance was found to vary significantly; while some business actors make payments regularly and on time, others only fulfill their obligations when reminded by officials. The primary factors contributing to non-compliance include insufficient dissemination of information and education from the government, as well as a lack of effective supervision and enforcement. These findings underscore the urgent need for enhanced socialization efforts, improved educational initiatives, and the establishment of a more effective monitoring system to bolster tax understanding and compliance among MSMEs. Such improvements are essential not only to foster a culture of voluntary tax compliance but also to optimize local revenue collection, thereby supporting sustainable regional development and public service delivery in Pamekasan Regency.]]>
