GST implementation in Malaysia: government adoption and initiatives / Heldah Rolland

• Main Author: Rolland, Heldah
• Format: Thesis
• Language: English
• Published: 2015
• Subjects: Tax collection. Taxpayer compliance
• Online Access: https://ir.uitm.edu.my/id/eprint/78638/1/78638.pdf; https://ir.uitm.edu.my/id/eprint/78638/

Goods and Services Tax (GST) or also known as Value Added Tax ( VAT ) has been implemented in 160 countries. In Malaysia, the implementation of GST is to replace the Sales and Services Tax which has been used by the country for years. The similarity of GST and Sales and Services Tax is they are a form of indirect tax since the Government cannot directly collect the taxable amount from individuals. The tax amount is recovered by the Government through sellers which is collectable during sales transaction. With the implementation of GST. the Government hopes to collect more proceeds to increase its national revenue and reduce the country's debt. However, since the implementation of GST, the Government has been receiving numerous responses from the public who are still in doubt whether its implementation will be able to achieve the objectives as set out by the Government. The purpose of this study is to identify whether the Government has carried out a thorough analysis and survey before implementing GST. Also, whether GST is based on adoption basis and whether Government agencies such as Kementerian Perdagangan Dalam Negeri Koperasi Dan Kepenggunaan (KPDNKK), Royal Malaysian Customs Department (RMCD) and Department of Information are ready to accept with support the GST system in Malaysia. The findings of the research show that the Government has not done any detailed study regarding the implementation of GST. This study used information on G S T implementation and planning strategies of various countries such as Singapore, New Zealand, Canada and India as comparison. This study found that these countries have conducted a thorough study and research before implementing GST in their countries. In addition, these countries have taken several initiatives to receive tremendous support from their citizens. The recommendation of this study is that more research should be carried out so that further improvement could be made to the existing GST system in the country.