Goods and Services Tax (GST) Compliance among Malaysian Consumers: The Influence of Price, Government Subsidies and Income Inequality

Ling, Sim Choon; Osman, Azlin Fazlina; Muhammad, Safizal; Sin, Kit Yeng; Jin, Lim Yi

doi:10.1016/s2212-5671(16)00025-3

Cited by 14 publications

(14 citation statements)

References 14 publications

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“…According to Mohd Yusof et al (2014), very few studies on tax noncompliance in Malaysia have examined the factors that could lead to tax fraud or noncompliance, such as penalty rate, marginal tax rate, foreign ownership, financial liquidity, company size and industry type. As for studies on GST compliance, studies such as Ling et al (2016) examined GST compliance among Malaysian consumers. They found that the price of goods and services, government subsidies, and income inequality significantly affected GST compliance.…”

Section: Literature Review 21 Gstmentioning

confidence: 99%

GST fraud prevention to ensure business sustainability: a Malaysian case study

Othman

Nordin

Sadiq

2020

JABES

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PurposeThis study provides in-depth explanation of Goods and Services Tax (GST) fraud prevention towards sustainability business.Design/methodology/approachThis study applies a qualitative research method, i.e. case study, to address the specific research objective.FindingsThe finding revealed a GST prevention model towards sustainable business. The finding shows that it is pertinent for the government to set preventive strategies in order to retain sustainable income for the government. Two essential dimensions emerged in the findings to support preventive strategies, namely macro- and micro-level measures.Practical implicationsThe findings of this study provide managers, investors and policymakers with evidence to what extent GST fraud could be minimize in order to safeguard government source of revenue and retain sustainable business in a country. As GST is an important source of revenue for the government, it is thus crucial to prevent fraud from occurring.Originality/valuePast studies have primarily focused on GST implementation from the perspective of service tax effectiveness and efficiency. However, this study examined the impact of GST fraud to determine measures that could ensure service tax sustainability using preventive strategies, in turn, introducing to the existing literature on indirect tax.

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Section: Literature Review 21 Gstmentioning

confidence: 99%

GST fraud prevention to ensure business sustainability: a Malaysian case study

Othman

Nordin

Sadiq

2020

JABES

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“…The period of GST implementation by the Malaysian government combined with the diminishing value of the ringgit, sluggishness in commodity prices, and plunging crude oil prices seems to have had a great influence on the price variation of goods and services (Malaysian Institute of Economic Research, 2016). The implementation of GST is believed to negatively influence the purchasing power due to the high price charged for each product and service (Ling et al, 2016).…”

Section: Resultsmentioning

confidence: 99%

“…VAT was first introduced by Germany and France in the form of a general consumption tax during World War I with France modernizing its implementation in the 1950s. Among the benefits of VAT are that it overcomes the issue of government income losses since the imposition of VAT means that all levels of transactions are taxed, and it is also considered as an effective way of generating revenue (Keen and Smith, 2006;Olatunji, 2009, Ling, Osman, Muhammad, Yeng, & Jin, 2016. To date, 160 countries in the world have implemented VAT/GST (Royal Malaysian Customs Department, 2019).…”

Section: Introductionmentioning

confidence: 99%

Tax Reform: Is it Welfare-Enhancing or Welfare-Reducing?

Taha

Ahmad

Endut

et al. 2021

IJBS

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The ongoing tax reform in Malaysia has triggered our motivation to understand the effect of such reform on the public since the government has continuously emphasised that the changes would not burden the consumer. Whether this is a myth or reality is deemed interesting to ponder upon. Thus, this study aims to provide evidence concerning Malaysian tax reform on consumer welfare by looking at the price effect, consumer burden, and inflation. Price observations of the pre-, during and post-reformation period were conducted to provide meaningful evidence. Interestingly, the outcome of the observation rules out the public accusation that the tax reform would boost the price of goods and services and further result in a welfarereducing event. Also, a review of the recent statistics on poverty incidence does not show a negative effect of tax policy changes on society’s welfare. It is hoped that the discussion provided in this paper will shed light on the impact of tax reformation in Malaysia, albeit a further thorough examination might be required.

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“…The government also makes its credit to uncertainty in the prediction of future retail prices, especially products in the FMCG market. As shown by Poterba (1996) and enhanced by Ling, Osman, Muhammad, Yeng, and Jin (2016), the increase in state taxes increases prices, but decrease -do not affect retail price. Even the Government's contemplation about increasing tax burden encourages an unpredictable increase in price dynamics.…”

Section: Theoretical Backgroundmentioning

confidence: 90%

Is it possible to predict food retail prices? Evidence from Lithuanian market

Volkov

Morkūnas

Skvarciany

2019

Proceedings of 6th International Scientific Conference Contemporary Issues in Business, Management and Economics Engineering ‘2

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Purpose – the purpose of the article is to develop a model that could be used for estimating the level of the effect of the highlighted determinants on food retail prices. Research methodology – the study is based on the obtained monthly data of food retail prices that covers the period from 2016 I m. to 2018 XII m. (36 observations). Multiple regression modelling is used in order to create a model of food retail prices. Findings – the results provide evidence that the most influential determinants are the price of the alternative products and purchasing power. It also contributes to scholarly thinking, stating, that it is possible to predict the future retail price of a particular product. Research limitations – the limitation of the current study is that the proposed econometric model is sufficient for the Lithuanian market and ought to be modified if used in other countries. Practical implications – the development model allows to predict/forecast the food retail prices which are crucial for households budget planning. Originality/Value – the current study examines the main determinant of retail food prices. It laid a background for future researches, based on examining possibilities to forecast food prices. The research results contribute to classic economic views about market imperfections influence onto supply-demand equilibrium and unproductiveness of consumer illicit market.

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Goods and Services Tax (GST) Compliance among Malaysian Consumers: The Influence of Price, Government Subsidies and Income Inequality

Cited by 14 publications

References 14 publications

GST fraud prevention to ensure business sustainability: a Malaysian case study

GST fraud prevention to ensure business sustainability: a Malaysian case study

Tax Reform: Is it Welfare-Enhancing or Welfare-Reducing?

Is it possible to predict food retail prices? Evidence from Lithuanian market

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