Sectoral responses, macroeconomic impact and household welfare: GST policy for the Malaysia economy / Juliana Mohd Abdul Kadir, Mohamed Aslam and Zarinah Yusof
Goods and services tax (GST) has been a controversial topic in Malaysia when it was first implemented. This study examines the impact of the GST on the Malaysian economy from three major perspectives. First, it investigates the consequent changes in sectoral responses, including output and prices fo...
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| Format: | Book Section |
| Language: | en |
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Faculty of Accountancy
2019
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| Subjects: | |
| Online Access: | https://ir.uitm.edu.my/id/eprint/43864/1/43864.pdf https://ir.uitm.edu.my/id/eprint/43864/ |
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| _version_ | 1833067382315155456 |
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| author | Mohd Abdul Kadir, Juliana Aslam, Mohamed Yusof, Zarinah |
| author_facet | Mohd Abdul Kadir, Juliana Aslam, Mohamed Yusof, Zarinah |
| author_sort | Mohd Abdul Kadir, Juliana |
| building | Tun Abdul Razak Library |
| collection | Institutional Repository |
| content_provider | Universiti Teknologi Mara |
| content_source | UiTM Institutional Repository |
| continent | Asia |
| country | Malaysia |
| description | Goods and services tax (GST) has been a controversial topic in Malaysia when it was first implemented. This study examines the impact of the GST on the Malaysian economy from three major perspectives. First, it investigates the consequent changes in sectoral responses, including output and prices for 15 main sectors. Second, the study presents the results of GST impact on seven macroeconomic variables, namely, consumption, investment, government revenue, government expenditure, export, import, and gross domestic product. Third, the results of household welfare are discussed. A computable general equilibrium model is utilized to simulate GST impact on the Malaysian economy, and a simple comparative static model is performed. The results prove that the higher the GST rate, the higher is the impact on each sector. The sectors most affected by GST are communication and ICT, and the electricity and gas sectors. By contrast, agriculture, forestry and logging, and the petroleum and natural gas sectors are the least affected. Consumption and investment receive the largest negative effect, whereas government revenue and expenditure show the largest positive effect. The study likewise finds that by lowering GST rate, the welfare loss was minimized and the higher-income groups were affected more than the lower-income groups. |
| format | Book Section |
| id | my.uitm.ir-43864 |
| institution | Universiti Teknologi Mara |
| language | en |
| publishDate | 2019 |
| publisher | Faculty of Accountancy |
| record_format | eprints |
| spelling | my.uitm.ir-438642021-03-24T13:46:09Z https://ir.uitm.edu.my/id/eprint/43864/ Sectoral responses, macroeconomic impact and household welfare: GST policy for the Malaysia economy / Juliana Mohd Abdul Kadir, Mohamed Aslam and Zarinah Yusof Mohd Abdul Kadir, Juliana Aslam, Mohamed Yusof, Zarinah Macroeconomics Consumption (Economics) Tax collection. Taxpayer compliance Goods and services tax (GST) has been a controversial topic in Malaysia when it was first implemented. This study examines the impact of the GST on the Malaysian economy from three major perspectives. First, it investigates the consequent changes in sectoral responses, including output and prices for 15 main sectors. Second, the study presents the results of GST impact on seven macroeconomic variables, namely, consumption, investment, government revenue, government expenditure, export, import, and gross domestic product. Third, the results of household welfare are discussed. A computable general equilibrium model is utilized to simulate GST impact on the Malaysian economy, and a simple comparative static model is performed. The results prove that the higher the GST rate, the higher is the impact on each sector. The sectors most affected by GST are communication and ICT, and the electricity and gas sectors. By contrast, agriculture, forestry and logging, and the petroleum and natural gas sectors are the least affected. Consumption and investment receive the largest negative effect, whereas government revenue and expenditure show the largest positive effect. The study likewise finds that by lowering GST rate, the welfare loss was minimized and the higher-income groups were affected more than the lower-income groups. Faculty of Accountancy 2019 Book Section PeerReviewed text en https://ir.uitm.edu.my/id/eprint/43864/1/43864.pdf Sectoral responses, macroeconomic impact and household welfare: GST policy for the Malaysia economy / Juliana Mohd Abdul Kadir, Mohamed Aslam and Zarinah Yusof. (2019) In: ICAM2019 – International Conference on Accounting and Management. Faculty of Accountancy, Universiti Teknologi MARA Puncak Alam, Selangor, p. 70. ISBN 978-967-17038-0-9 |
| spellingShingle | Macroeconomics Consumption (Economics) Tax collection. Taxpayer compliance Mohd Abdul Kadir, Juliana Aslam, Mohamed Yusof, Zarinah Sectoral responses, macroeconomic impact and household welfare: GST policy for the Malaysia economy / Juliana Mohd Abdul Kadir, Mohamed Aslam and Zarinah Yusof |
| title | Sectoral responses, macroeconomic impact and household welfare: GST policy for the Malaysia economy / Juliana Mohd Abdul Kadir, Mohamed Aslam and Zarinah Yusof |
| title_full | Sectoral responses, macroeconomic impact and household welfare: GST policy for the Malaysia economy / Juliana Mohd Abdul Kadir, Mohamed Aslam and Zarinah Yusof |
| title_fullStr | Sectoral responses, macroeconomic impact and household welfare: GST policy for the Malaysia economy / Juliana Mohd Abdul Kadir, Mohamed Aslam and Zarinah Yusof |
| title_full_unstemmed | Sectoral responses, macroeconomic impact and household welfare: GST policy for the Malaysia economy / Juliana Mohd Abdul Kadir, Mohamed Aslam and Zarinah Yusof |
| title_short | Sectoral responses, macroeconomic impact and household welfare: GST policy for the Malaysia economy / Juliana Mohd Abdul Kadir, Mohamed Aslam and Zarinah Yusof |
| title_sort | sectoral responses, macroeconomic impact and household welfare: gst policy for the malaysia economy / juliana mohd abdul kadir, mohamed aslam and zarinah yusof |
| topic | Macroeconomics Consumption (Economics) Tax collection. Taxpayer compliance |
| url | https://ir.uitm.edu.my/id/eprint/43864/1/43864.pdf https://ir.uitm.edu.my/id/eprint/43864/ |
| url_provider | http://ir.uitm.edu.my/ |