2
views
0
recommends
+1 Recommend
1 collections
    0
    shares
      • Record: found
      • Abstract: found
      • Article: found
      Is Open Access

      Buoyancy Estimates of Malaysia's Tax System 1961 – 1998

      1 ,

      Malaysian Management Journal

      UUM Press

      Read this article at

      ScienceOpenPublisher
      Bookmark
          There is no author summary for this article yet. Authors can add summaries to their articles on ScienceOpen to make them more accessible to a non-specialist audience.

          Abstract

          Several criteria are used to determine a 'good tax system' and they include administrative feasibility, ensuring burden of tax is spread fairly among taxpayers and tax buoyancy. Tax buoyancy measures the responsiveness of tax revenue to income growth. Previous studies have assumed a constant buoyancy estimate for the period under study and hence applied a double-log tax model (Mansfield, 1972; Choudhry, 1975; Byrne, 1983). In practice, however, tax buoyancies may change over time due to inflation, changing tax bases, improved tax administration and stricter enforcement of tax law by revenue authorities.   This study uses the Box-Cox tax model which allows the determination of inter-temporal tax buoyancies for the period 1961-1998. The results obtained revealed a steady decline in buoyancy estimates of less than one for both direct and indirect taxes implying inefficiencies in the tax system. Suggestions are made to revamp the current tax system by integrating existing indirect taxes such as sales and service tax into a single broad-based consumption tax.

          Related collections

          Author and article information

          Contributors
          Malaysia
          Malaysia
          Journal
          Malaysian Management Journal
          UUM Press
          February 12 2020
          : 4
          : 75-87
          Affiliations
          [1 ]School of Accountancy, Universiti Utara Malaysia
          Article
          10.32890/mmj.4.1-2.2000.8580

          All content is freely available without charge to users or their institutions. Users are allowed to read, download, copy, distribute, print, search, or link to the full texts of the articles in this journal without asking prior permission of the publisher or the author. Articles published in the journal are distributed under a http://creativecommons.org/licenses/by/4.0/.

          Comments

          Comment on this article