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Understanding of goods and services tax (GST) and spending behavior among Malaysian consumers

Mohamed Zabri, Shafie and Ahmad, Kamilah and Tham, Gen He (2016) Understanding of goods and services tax (GST) and spending behavior among Malaysian consumers. In: Persidangan Kebangsaan Ekonomi Malaysia ke-11 (PERKEM) 2016, 27-28 July 2016, Dewan Persidangan, Kementerian Kewangan Malaysia (MOF) & Hotel Bangi-Putrajaya, Bandar Baru Bangi, Selangor.


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Generally, tax is recognized as one of the main sources of government’s income. Taxes can be classified into direct and indirect taxes. Corporate Tax, Personal Income Tax, Real Property Gains Tax, Estate Duty and Stamp Duty are an examples of direct taxes whereas indirect taxes consist of import duties, export duties, excise duties, sales tax and service tax. Goods and services tax (GST) is an example of indirect tax. Revenues from GST form a significant portion of government income in many countries. Despite the increasing popularity and success of GST implementation around the world, Malaysian citizens are not entirely convinced with the new tax regime which caused by their lower level of understanding of the benefits behind the implementation of GST. Therefore, this study was conducted to investigate the level of understanding of GST and also examine the relationship between the understanding of GST and spending behavior among consumers in Batu Pahat, Johor. Questionnaire-based survey was conducted to obtain the data. Descriptive and correlation analyses were used to test the hypotheses constructed. The result shows that the level of understanding towards GST among consumers in Batu Pahat is at moderate level. Besides, significant findings showed that changes in spending behavior among consumers in this study after the implementation of GST. It was also found that there was no significant relationship between the level of understanding of GST and spending behavior among consumers involved in this study. The results of this study were believed to be able to serve as feedback for government, practitioner and other related parties in understanding the behavioral changes among consumers caused by the implementation of GST.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: Goods and services tax (GST); spending behavior
Subjects: H Social Sciences > HF Commerce > HF5001-6182 Business
Divisions: Faculty of Technology Management and Business > Department of Technology Management
Depositing User: Mr. Mohammad Shaifulrip Ithnin
Date Deposited: 05 Jun 2017 00:47
Last Modified: 05 Jun 2017 00:47
URI: http://eprints.uthm.edu.my/id/eprint/8392
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