CARBON TAX: IS MALAYSIA READY FOR IT? PERCEPTION FROM BUSINESS OWNER.
DOI:
https://doi.org/10.20961/4exsd309Keywords:
Carbon tax, perception, fairness, climate change, government revenueAbstract
This study investigates the perceptions of business owners concerning their level of readiness and acceptance toward the implementation of a carbon tax policy in Malaysia. The introduction of carbon tax was initiated by the Malaysia government in 2018 to overcome environmental issues together to achieve environmental sustainability objectives. Understanding business perceptions and acceptance behavior is increasingly important as the carbon taxation gains prominence in developing countries. Primary data were collected though a self-administrative questionnaire distributed to 130 business owners at Petaling Jaya Selangor. Of 130, only 80 completed and usable responses were used in data analysis. Descriptive data were analyzed to accumulate their awareness and perception on the new system. This study highlights mixed reactions among businesses regarding the introduction of a Carbon Tax in Malaysia, with predominantly positive perceptions but some lingering concerns. Respondents generally acknowledged the environmental benefits, particularly in reducing emissions, and recognized the potential for indirect benefits to the public through government revenue utilization. However, some respondents expressed concerns about the potential impact on output prices and the purchasing power of low-income groups. Despite these apprehensions, many believed that the government would reinvest the tax revenues into sustainable initiatives, ensuring long-term benefits for the nation. Overall, the findings indicate that most respondents are knowledgeable about the Carbon Tax System, exhibit positive awareness of sustainability issues, and show concern for environmental preservation. This reflects a growing recognition of the importance of balancing economic and environmental priorities.
References
Abdul-Latiff, A. R., Bany-Ariffib, A. N., Che-Omar, M. R., & Harjito, D. A. (2005). Tax literacy rate among taxpayers: Evidence from Malaysia. Jurnal Akuntansi dan Auditing Indonesia, 9(1).
Arif, R. (2018). Faktor-faktor yang mempengaruhi implementasi standar akuntansi pemerintahan berbasis akrual (Study empiris pada Pemerintahan Kabupaten Lamongan). Akuntansi, 9(08).
Baranzini, A., Borzykowski, N., & Carattini, S. (2016). Carbon offsets out of the woods? The acceptability of domestic vs. international reforestation programmes. Centre for Climate Change Economics and Policy Working Paper No. 289.
Baranzini, A., & Carattini, S. (2016). Effectiveness, earmarking and labeling: Testing the acceptability of carbon taxes with survey data. Environment Economic Policy Study, 1–31. https://doi.org/10.1007/s10018-016-0144-7
Bhushan, P., & Medury, Y. (2013). Determining tax literacy of salaried individuals: An empirical analysis. Journal of Business and Management, 10(6), 76–80. https://doi.org/10.9790/487X-1066771
Bowen, A. (2015). Carbon pricing: How best to use the revenue? Policy report. Grantham Research Institute on Climate Change and the Environment, 1–28.
Carattini, S., Carvalho, M., & Fankhauser, S. (2017). How to make carbon taxes more acceptable. Policy report. Grantham Research Institute on Climate Change and the Environment, 1–46.
Hambali, S. S., Kamaluddin, A., & Alam, M. S. (2017). Taxpayers’ competency level in governing goods services tax (GST) compliance: Malaysia scenario. SHS Web of Conferences, 36, 00042, 1–17. https://doi.org/10.1051/shsconf/20173600042
Hasseldine, D. J., & Bebbington, K. J. (1991). Blending economic deterrence and fiscal psychology models in the design of responses to tax evasion: The New Zealand experience. Journal of Economic Psychology, 12(2), 299–324. https://doi.org/10.1016/0167-4870(91)90018-O
Kamaluddin, A., & Madi, N. (2005). Tax literacy and tax awareness of salaried individuals in Sabah and Sarawak. Journal of Financial Reporting and Accounting, 3(1), 71–89. https://doi.org/10.1108/19852510580000338
Loo, E., Evans, C., & McKerchar, M. A. (2012). Challenges in understanding compliance behaviour of taxpayers in Malaysia. SSRN Electronic Journal, 3(2). https://doi.org/10.2139/ssrn.2128378
Moomal, A., & Zakaria, Z. (2014). Awareness, acceptance and expectations of Malaysia consumers towards good and service tax (GST). Journal of Contemporary Management Sciences, 4(2), 15–27.
Muhammad, I., Hasnu, N. N. M., & Ekins, P. (2021). Empirical research of public acceptance on environmental tax: A systematic literature review. Environments, 8(109), 1–20.
Muhammad, I., Hasnu, N. N. M., Ibrahim, M. A., Hamid, S. A., & Hanefah, M. M. (2022). Trust in government and its determinants: An empirical study of public acceptability for carbon tax in Malaysia. Sustainability, 14, 1–12.
Muhammad, I., Mohd Hasnu, N. N., Ibrahim, M. A., Abdul Hamid, S., & Mohd Hanefah, M. (2023). Public acceptance of carbon tax implementation: A nationwide empirical study in Malaysia. Jurnal Pengurusan, 69(6).
Norsiah, A. (2004). Gender differences of attitudes towards taxation. Akademika, 65(July), 125–135.
Palil, M. R., Md. Akir, M. R., & Wan Ahmad, W. F. (2013). The perception of taxpayers on tax knowledge and tax education with level of tax compliance: A study the influences of religiosity. ASEAN Journal of Economics, Management and Accounting, 1(1), 118–129.
Povitkina, M., Jagers, S. C., Matti, S., & Martinsson, J. (2021). Why are carbon taxes unfair? Disentangling public perceptions of fairness. Global Environmental Change, 70. https://doi.org/10.1016/j.gloenvcha.2021.102356
