Fiscal capacity, fiscal effort and fiscal performance of state governments in peninsular Malaysia: the case of land tax

The main objective of this paper is to provide a measure of fiscal capacity and fiscal effort of the state governments in Malaysia by using the approach originally proposed by the now defunct U.S. Advisory Commission on Intergovernmental Relations (ACIR) – the representative revenue approach (RRS)...

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Main Author: Ahmad Zafarullah Abdul Jalil,
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2013
Online Access:http://journalarticle.ukm.my/8097/1/5580-13427-1-SM.pdf
http://journalarticle.ukm.my/8097/
http://ejournal.ukm.my/jem/index
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spelling my-ukm.journal.80972016-12-14T06:46:12Z http://journalarticle.ukm.my/8097/ Fiscal capacity, fiscal effort and fiscal performance of state governments in peninsular Malaysia: the case of land tax Ahmad Zafarullah Abdul Jalil, The main objective of this paper is to provide a measure of fiscal capacity and fiscal effort of the state governments in Malaysia by using the approach originally proposed by the now defunct U.S. Advisory Commission on Intergovernmental Relations (ACIR) – the representative revenue approach (RRS). However, the study is limited to the analysis of land tax. The results indicate that state governments differ significantly in terms of their tax capacity, as well as their tax effort. The states of Pahang, Perak and Terengganu are found to have above average land tax capacity. However, these states do not seem to be able to leverage on their capacity as demonstrated by the level attained in relation to the tax effort index. The relationship between tax effort and fiscal position is also examined to determine whether fiscal deficit or surplus is influenced by the level of tax effort exerted. The results sufficiently demonstrate that states with higher tax effort have lower deficit or higher surplus as compared to states with lower tax effort. Penerbit Universiti Kebangsaan Malaysia 2013 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/8097/1/5580-13427-1-SM.pdf Ahmad Zafarullah Abdul Jalil, (2013) Fiscal capacity, fiscal effort and fiscal performance of state governments in peninsular Malaysia: the case of land tax. Jurnal Ekonomi Malaysia, 47 (1). pp. 139-154. ISSN 0127-1962 http://ejournal.ukm.my/jem/index
institution Universiti Kebangsaan Malaysia
building Perpustakaan Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description The main objective of this paper is to provide a measure of fiscal capacity and fiscal effort of the state governments in Malaysia by using the approach originally proposed by the now defunct U.S. Advisory Commission on Intergovernmental Relations (ACIR) – the representative revenue approach (RRS). However, the study is limited to the analysis of land tax. The results indicate that state governments differ significantly in terms of their tax capacity, as well as their tax effort. The states of Pahang, Perak and Terengganu are found to have above average land tax capacity. However, these states do not seem to be able to leverage on their capacity as demonstrated by the level attained in relation to the tax effort index. The relationship between tax effort and fiscal position is also examined to determine whether fiscal deficit or surplus is influenced by the level of tax effort exerted. The results sufficiently demonstrate that states with higher tax effort have lower deficit or higher surplus as compared to states with lower tax effort.
format Article
author Ahmad Zafarullah Abdul Jalil,
spellingShingle Ahmad Zafarullah Abdul Jalil,
Fiscal capacity, fiscal effort and fiscal performance of state governments in peninsular Malaysia: the case of land tax
author_facet Ahmad Zafarullah Abdul Jalil,
author_sort Ahmad Zafarullah Abdul Jalil,
title Fiscal capacity, fiscal effort and fiscal performance of state governments in peninsular Malaysia: the case of land tax
title_short Fiscal capacity, fiscal effort and fiscal performance of state governments in peninsular Malaysia: the case of land tax
title_full Fiscal capacity, fiscal effort and fiscal performance of state governments in peninsular Malaysia: the case of land tax
title_fullStr Fiscal capacity, fiscal effort and fiscal performance of state governments in peninsular Malaysia: the case of land tax
title_full_unstemmed Fiscal capacity, fiscal effort and fiscal performance of state governments in peninsular Malaysia: the case of land tax
title_sort fiscal capacity, fiscal effort and fiscal performance of state governments in peninsular malaysia: the case of land tax
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2013
url http://journalarticle.ukm.my/8097/1/5580-13427-1-SM.pdf
http://journalarticle.ukm.my/8097/
http://ejournal.ukm.my/jem/index
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score 13.209306