Land-based tax capacity and tax effort of the state governments in Peninsular Malaysia: A Representative Revenue System (RRs) approach

The Auditor General Report 2004 revealed that seven out of 13 states in Malaysia are facing dire financial difficulties to the extent of being qualified as at the verge of bankruptcy. One of the solutions proposed would be to devolve more tax responsibilities to the state governments. However, some...

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Main Author: Abdul Jalil, Ahmad Zafarullah
Format: Article
Language:English
Published: Universiti Kebangsaan Malaysia 2011
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Online Access:http://repo.uum.edu.my/3666/1/zaf.pdf
http://repo.uum.edu.my/3666/
http://pkukmweb.ukm.my/e-bangi/papers/2011/zafarullah011.pdf
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spelling my.uum.repo.36662016-04-21T04:19:23Z http://repo.uum.edu.my/3666/ Land-based tax capacity and tax effort of the state governments in Peninsular Malaysia: A Representative Revenue System (RRs) approach Abdul Jalil, Ahmad Zafarullah HJ Public Finance The Auditor General Report 2004 revealed that seven out of 13 states in Malaysia are facing dire financial difficulties to the extent of being qualified as at the verge of bankruptcy. One of the solutions proposed would be to devolve more tax responsibilities to the state governments. However, some authors have argued that the Malaysian state governments have not been using their tax base efficiently and the devolution of more tax responsibilities towards them will only result in more inefficiency. It is thus important to gauge the fiscal effort exerted by the state governments before any attempts being made towards increasing tax responsibilities of the state governments. The main objective of this article is to measure the fiscal effort and capacity of the state governments in Peninsular Malaysia. In order to achieve this, we will use the Representative Revenue System (RRS)/ Representative Tax System (RTS) approach. This paper will discuss the preliminary findings of the research using the 2008 data. Our results show that more-developed states tend to have higher index of tax effort compared to the less-developed ones. It is also shown that state governments with high fiscal effort are in a relatively better fiscal position. However, tax arrears do not seem to correlate with the level of tax effort. Universiti Kebangsaan Malaysia 2011 Article PeerReviewed application/pdf en http://repo.uum.edu.my/3666/1/zaf.pdf Abdul Jalil, Ahmad Zafarullah (2011) Land-based tax capacity and tax effort of the state governments in Peninsular Malaysia: A Representative Revenue System (RRs) approach. Jurnal e-Bangi, 6 (2). pp. 206-219. ISSN 1823-884x http://pkukmweb.ukm.my/e-bangi/papers/2011/zafarullah011.pdf
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
language English
topic HJ Public Finance
spellingShingle HJ Public Finance
Abdul Jalil, Ahmad Zafarullah
Land-based tax capacity and tax effort of the state governments in Peninsular Malaysia: A Representative Revenue System (RRs) approach
description The Auditor General Report 2004 revealed that seven out of 13 states in Malaysia are facing dire financial difficulties to the extent of being qualified as at the verge of bankruptcy. One of the solutions proposed would be to devolve more tax responsibilities to the state governments. However, some authors have argued that the Malaysian state governments have not been using their tax base efficiently and the devolution of more tax responsibilities towards them will only result in more inefficiency. It is thus important to gauge the fiscal effort exerted by the state governments before any attempts being made towards increasing tax responsibilities of the state governments. The main objective of this article is to measure the fiscal effort and capacity of the state governments in Peninsular Malaysia. In order to achieve this, we will use the Representative Revenue System (RRS)/ Representative Tax System (RTS) approach. This paper will discuss the preliminary findings of the research using the 2008 data. Our results show that more-developed states tend to have higher index of tax effort compared to the less-developed ones. It is also shown that state governments with high fiscal effort are in a relatively better fiscal position. However, tax arrears do not seem to correlate with the level of tax effort.
format Article
author Abdul Jalil, Ahmad Zafarullah
author_facet Abdul Jalil, Ahmad Zafarullah
author_sort Abdul Jalil, Ahmad Zafarullah
title Land-based tax capacity and tax effort of the state governments in Peninsular Malaysia: A Representative Revenue System (RRs) approach
title_short Land-based tax capacity and tax effort of the state governments in Peninsular Malaysia: A Representative Revenue System (RRs) approach
title_full Land-based tax capacity and tax effort of the state governments in Peninsular Malaysia: A Representative Revenue System (RRs) approach
title_fullStr Land-based tax capacity and tax effort of the state governments in Peninsular Malaysia: A Representative Revenue System (RRs) approach
title_full_unstemmed Land-based tax capacity and tax effort of the state governments in Peninsular Malaysia: A Representative Revenue System (RRs) approach
title_sort land-based tax capacity and tax effort of the state governments in peninsular malaysia: a representative revenue system (rrs) approach
publisher Universiti Kebangsaan Malaysia
publishDate 2011
url http://repo.uum.edu.my/3666/1/zaf.pdf
http://repo.uum.edu.my/3666/
http://pkukmweb.ukm.my/e-bangi/papers/2011/zafarullah011.pdf
_version_ 1644278565481480192
score 12.925488