Perceptions of salaried taxpayers toward the reintroduction of GST in Malaysia: a study in Padang Terap, Kedah

• Main Author: Muhammad Aliff Aiman, Mohd Supardi
• Format: Dissertation
• Language: English; English
• Published: 2025
• Subjects: HJ4771.6 Income Tax. Tax Returns.
• Online Access: https://etd.uum.edu.my/12090/1/s833784_01.pdf; https://etd.uum.edu.my/12090/2/s833784_02.pdf; https://etd.uum.edu.my/12090/

The Goods and Services Tax was introduced in Malaysia in 2015 in order to enhance the revenue collection and tax efficiency but it was abolished in 2018 due to strong public resistance. Recent challenges in fiscal aspect as well as declining in revenue from Sales and Services Tax (SST) have reignited the discussion on the reintroduction of GST. This study examines the salaried taxpayers’ perceptions toward the reintroduction of GST by focusing on four key factors which are tax literacy, perceived compliance costs, perceived fairness and government communication. A quantitative research design was employed, using a structured questionnaire administrated among 260 secondary school teachers in Padang Terap, Kedah, representing salaried taxpayers in a rural Malaysian context. A total of 195 usable responses were analysed. The findings revealed that the respondents possessed moderate tax literacy but expressed significant concerns about GST’s fairness and affordability. Other than that, more than half of the respondents were unwilling in accepting the reintroduction of GST but supports increased when measures such as lower GST rates on essential goods, transparent tax revenue usage and targeted subsidies for low-income groups were introduced. The findings also highlight the importance for targeted awareness campaigns, tiered tax structures and transparent reporting to build trust and compliance among the taxpayers. These insights provide critical implications for the policymakers in considering the reintroduction of GST in Malaysia.