Examining public acceptance choice causes on sales and service tax implementation in Malaysia
In Malaysia, the indirect tax environment is evolving fast, and the risk has never been higher. The public perception of Sales and Service Tax (SST) as a business cost aggra�vates the increase in essential needs prices. Hence, the heavy burden on Malaysians’ income, which ultimately constitutes...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
LLC “СPС “Business Perspectives”
2020
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| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/28566/1/Examining%20public%20acceptance%20choice%20causes%20on%20sales%20and%20service%20tax%20implementation%20in%20Malaysia.pdf https://repo.uum.edu.my/id/eprint/28566/ http://dx.doi.org/10.21511/ppm.18(4).2020.20 |
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| Institution: | Universiti Utara Malaysia |
| Language: | English |
| Summary: | In Malaysia, the indirect tax environment is evolving fast, and the risk has never been
higher. The public perception of Sales and Service Tax (SST) as a business cost aggra�vates the increase in essential needs prices. Hence, the heavy burden on Malaysians’
income, which ultimately constitutes a big worry and outcry, makes the study relevant.
The study investigates the relationship between selected causes of equity and fairness
(tax fairness), certainty (tax burden), accountability to taxpayers, tax knowledge, and
public acceptance of SST implementation in Malaysia.
Data were collected through a structured survey among the public in Klang Valley.
Respondents were chosen randomly from various locations in public and private sec�tor organizations. A total of 177 out of the 228 completed and received questionnaires
are found suitable for further analysis. The study adopts the SmartPLS version 3.3.2
statistical analysis tool to test the four hypotheses formulated.
The study results reveal tax fairness, tax burden, and government accountability are sig�nificant and positively relate to public acceptance of SST implementation in Malaysia.
This further buttressed that tax fairness, tax burden, and government accountability
are critical for public acceptance of SST implementation because of their economic
implications. In contrast, tax knowledge is not significant and negatively relates to pub�lic acceptance of SST implementation. The effect indicates that tax knowledge is not
an essential factor as far as public acceptance of SST implementation is concerned in
Malaysia. |
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