Taxpayers’ Competency Level in Governing Goods Services Tax (GST) Compliance: Malaysia Scenario

¹ Faculty of Accountancy Universiti Teknologi MARA Puncak Alam
² Accounting Research Institute Universiti Teknologi MARA Shah Alam

^* Corresponding author’s email: syaqilah9972@salam.uitm.edu.my

Abstract

GST implementation in Malaysia in April 2015 is part of the tax reformation with the goal of having a more efficient and effective taxation system. A successful tax reformation requires a high acceptance from taxpayers. In order to aid in the acceptance of GST implementation, taxpayers need to have a good competency level reflected through proper knowledge and awareness of the GST system, also known as GST literacy. Thus, the main objective of this study is to assess the level of GST literacy of taxpayers. Secondly, the current study aims to identify the relationship between GST literacy level with the GST acceptance of the taxpayers. Questionnaires were distributed to 150 secondary school teachers in Johor, one of the states in Malaysia. The finding indicates that the respondents’ literacy rate towards the GST implementation in Malaysia is fair. The results imply that secondary school teachers have a moderate knowledge level and high awareness level on GST implementation in Malaysia. The study proves statistically that there is a positive significant relationship between GST literacy with GST acceptance.