An overview of property tax collection as a tool for a sustainable local government reform in Malaysia

Tax collection in the Local Governments in Malaysia has been a recurring issue due high rate of arrears in property tax revenue generation. However, the current issue is how to increase the revenue base of Local Governments through property taxation. This is because tax collection revenue ge...

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Bibliographic Details
Main Authors: Umar, Muhammad Akilu, Kasim, Rozilah, Martin , David Juanil
Format: Conference or Workshop Item
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Online Access:http://eprints.uthm.edu.my/3377/
http://eprints.uthm.edu.my/3377/1/BIS052.pdf
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Summary:Tax collection in the Local Governments in Malaysia has been a recurring issue due high rate of arrears in property tax revenue generation. However, the current issue is how to increase the revenue base of Local Governments through property taxation. This is because tax collection revenue generated is seriously declining according to the Economic Report of the Ministry of Finance, said that performance of the revenue collection in Local Governments throughout the country showed an alarming decline. Similarly, recent study has shown that the low income generation from property tax has resulted in the reduction in expenditure due to persistent increase in budgets allocations. Most significantly, recent pilot survey reveals that there has been a persistent problem of declining property tax collection generation in Pasir Gudang Municipal Council Malaysia. Therefore, the aim of this paper is to study the problems associated with low property tax revenue generation in Malaysia. The study intends to find out the reason for the prevailing decrease in property tax collection generation, through investigating the Taxpayers expectations from the property tax generated by the local government. More so, the study discovers that the taxpayers expect a lot from property tax collected. The implication of the study is that it concentrated measures taken to ensure property tax compliance, but not service delivery, while on the other hand it may increase the revenue generation of the local government. Moreover, it is only through a sustainable property tax collection reform that the problem of low revenue generation can be resolved