Fiscal capacity, fiscal effort and fiscal performance of state governments in peninsular Malaysia: the case of land tax

The main objective of this paper is to provide a measure of fiscal capacity and fiscal effort of the state governments in Malaysia by using the approach originally proposed by the now defunct U.S. Advisory Commission on Intergovernmental Relations (ACIR) – the representative revenue approach (RRS)...

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Main Author:	Ahmad Zafarullah Abdul Jalil
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2013
Online Access:	http://journalarticle.ukm.my/8097/ http://journalarticle.ukm.my/8097/ http://journalarticle.ukm.my/8097/1/5580-13427-1-SM.pdf

id	ukm-8097
recordtype	eprints
spelling	ukm-80972016-12-14T06:46:12Z http://journalarticle.ukm.my/8097/ Fiscal capacity, fiscal effort and fiscal performance of state governments in peninsular Malaysia: the case of land tax Ahmad Zafarullah Abdul Jalil, The main objective of this paper is to provide a measure of fiscal capacity and fiscal effort of the state governments in Malaysia by using the approach originally proposed by the now defunct U.S. Advisory Commission on Intergovernmental Relations (ACIR) – the representative revenue approach (RRS). However, the study is limited to the analysis of land tax. The results indicate that state governments differ significantly in terms of their tax capacity, as well as their tax effort. The states of Pahang, Perak and Terengganu are found to have above average land tax capacity. However, these states do not seem to be able to leverage on their capacity as demonstrated by the level attained in relation to the tax effort index. The relationship between tax effort and fiscal position is also examined to determine whether fiscal deficit or surplus is influenced by the level of tax effort exerted. The results sufficiently demonstrate that states with higher tax effort have lower deficit or higher surplus as compared to states with lower tax effort. Penerbit Universiti Kebangsaan Malaysia 2013 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/8097/1/5580-13427-1-SM.pdf Ahmad Zafarullah Abdul Jalil, (2013) Fiscal capacity, fiscal effort and fiscal performance of state governments in peninsular Malaysia: the case of land tax. Jurnal Ekonomi Malaysia, 47 (1). pp. 139-154. ISSN 0127-1962 http://ejournal.ukm.my/jem/index
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	The main objective of this paper is to provide a measure of fiscal capacity and fiscal effort of the state governments in Malaysia by using the approach originally proposed by the now defunct U.S. Advisory Commission on Intergovernmental Relations (ACIR) – the representative revenue approach (RRS). However, the study is limited to the analysis of land tax. The results indicate that state governments differ significantly in terms of their tax capacity, as well as their tax effort. The states of Pahang, Perak and Terengganu are found to have above average land tax capacity. However, these states do not seem to be able to leverage on their capacity as demonstrated by the level attained in relation to the tax effort index. The relationship between tax effort and fiscal position is also examined to determine whether fiscal deficit or surplus is influenced by the level of tax effort exerted. The results sufficiently demonstrate that states with higher tax effort have lower deficit or higher surplus as compared to states with lower tax effort.
format	Article
author	Ahmad Zafarullah Abdul Jalil,
spellingShingle	Ahmad Zafarullah Abdul Jalil, Fiscal capacity, fiscal effort and fiscal performance of state governments in peninsular Malaysia: the case of land tax
author_facet	Ahmad Zafarullah Abdul Jalil,
author_sort	Ahmad Zafarullah Abdul Jalil,
title	Fiscal capacity, fiscal effort and fiscal performance of state governments in peninsular Malaysia: the case of land tax
title_short	Fiscal capacity, fiscal effort and fiscal performance of state governments in peninsular Malaysia: the case of land tax
title_full	Fiscal capacity, fiscal effort and fiscal performance of state governments in peninsular Malaysia: the case of land tax
title_fullStr	Fiscal capacity, fiscal effort and fiscal performance of state governments in peninsular Malaysia: the case of land tax
title_full_unstemmed	Fiscal capacity, fiscal effort and fiscal performance of state governments in peninsular Malaysia: the case of land tax
title_sort	fiscal capacity, fiscal effort and fiscal performance of state governments in peninsular malaysia: the case of land tax
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2013
url	http://journalarticle.ukm.my/8097/ http://journalarticle.ukm.my/8097/ http://journalarticle.ukm.my/8097/1/5580-13427-1-SM.pdf
first_indexed	2023-09-18T19:51:30Z
last_indexed	2023-09-18T19:51:30Z
_version_	1777406250555801600

Fiscal capacity, fiscal effort and fiscal performance of state governments in peninsular Malaysia: the case of land tax

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