Goods and services tax (GST) and its potential impacts on Malaysian inflation

A modem consumption tax known as Goods and Services Tax (GST) or Value Added Tax (VAT) is an indirect tax levied at every stage of production chain. Malaysian GST was introduced on 11' April 2015 with the introductory rate of 6 percent consisting of the standard rate, zero-rate and exempted rat...

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Main Author:	Nurliyana, Zainol
Format:	Thesis
Language:	eng eng eng
Published:	2018
Subjects:	HC Economic History and Conditions
Online Access:	https://etd.uum.edu.my/8887/1/Deposit%20Permission_s815844.pdf https://etd.uum.edu.my/8887/2/s815844_01.pdf https://etd.uum.edu.my/8887/3/s815844_referrences.docx
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id	my-uum-etd.8887
record_format	uketd_dc
spelling	my-uum-etd.88872021-12-05T02:03:47Z Goods and services tax (GST) and its potential impacts on Malaysian inflation 2018 Nurliyana, Zainol Abdullah, Hussin School of Economics, Finance & Banking School of Economics, Finance & Banking HC Economic History and Conditions HJ4771.6 Income Tax. Tax Returns. A modem consumption tax known as Goods and Services Tax (GST) or Value Added Tax (VAT) is an indirect tax levied at every stage of production chain. Malaysian GST was introduced on 11' April 2015 with the introductory rate of 6 percent consisting of the standard rate, zero-rate and exempted rate type. Various research has been done to study the economic impact of GST. This study examines the potential impacts of GST in Malaysia with the focus on the inflationary effect towards the economy. The statistical analysis utilized a combination of monthly data spanning from year 2015 to 2018, and forecast data, to measure the objectives of the research in investigating whether Malaysian GST will be inflationary or otherwise. The analysis was conducted to empirically determine the inflationary impact of GST in the short term and long term using Autoregressive Distributive Lagged (ARDL) approach through Bound Testing together with other explanatory variables in the framework of a combination of structuralist, monetarist and fiscalist elements in the model namely unemployment rate, money supply, and import. The Augmented Dickey Fuller (ADF) unit root test was applied to identify the stationary properties of the tested time series variables. The empirical results found cointegration in the series, and the study reveals that the inflation will increase by approximately 0.49 percent in the short run and 0.11 percent in the long run as a result of GST. Lastly, the CUSUM and CUSUMQ graphs confirm that the estimation is structurally stable. The findings shed new insight and lay out a clear picture for Malaysian regarding the inflationary impacts of GST. 2018 Thesis https://etd.uum.edu.my/8887/ https://etd.uum.edu.my/8887/1/Deposit%20Permission_s815844.pdf text eng staffonly https://etd.uum.edu.my/8887/2/s815844_01.pdf text eng public https://etd.uum.edu.my/8887/3/s815844_referrences.docx text eng public other masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng
advisor	Abdullah, Hussin
topic	HC Economic History and Conditions HC Economic History and Conditions
spellingShingle	HC Economic History and Conditions HC Economic History and Conditions Nurliyana, Zainol Goods and services tax (GST) and its potential impacts on Malaysian inflation
description	A modem consumption tax known as Goods and Services Tax (GST) or Value Added Tax (VAT) is an indirect tax levied at every stage of production chain. Malaysian GST was introduced on 11' April 2015 with the introductory rate of 6 percent consisting of the standard rate, zero-rate and exempted rate type. Various research has been done to study the economic impact of GST. This study examines the potential impacts of GST in Malaysia with the focus on the inflationary effect towards the economy. The statistical analysis utilized a combination of monthly data spanning from year 2015 to 2018, and forecast data, to measure the objectives of the research in investigating whether Malaysian GST will be inflationary or otherwise. The analysis was conducted to empirically determine the inflationary impact of GST in the short term and long term using Autoregressive Distributive Lagged (ARDL) approach through Bound Testing together with other explanatory variables in the framework of a combination of structuralist, monetarist and fiscalist elements in the model namely unemployment rate, money supply, and import. The Augmented Dickey Fuller (ADF) unit root test was applied to identify the stationary properties of the tested time series variables. The empirical results found cointegration in the series, and the study reveals that the inflation will increase by approximately 0.49 percent in the short run and 0.11 percent in the long run as a result of GST. Lastly, the CUSUM and CUSUMQ graphs confirm that the estimation is structurally stable. The findings shed new insight and lay out a clear picture for Malaysian regarding the inflationary impacts of GST.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Nurliyana, Zainol
author_facet	Nurliyana, Zainol
author_sort	Nurliyana, Zainol
title	Goods and services tax (GST) and its potential impacts on Malaysian inflation
title_short	Goods and services tax (GST) and its potential impacts on Malaysian inflation
title_full	Goods and services tax (GST) and its potential impacts on Malaysian inflation
title_fullStr	Goods and services tax (GST) and its potential impacts on Malaysian inflation
title_full_unstemmed	Goods and services tax (GST) and its potential impacts on Malaysian inflation
title_sort	goods and services tax (gst) and its potential impacts on malaysian inflation
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2018
url	https://etd.uum.edu.my/8887/1/Deposit%20Permission_s815844.pdf https://etd.uum.edu.my/8887/2/s815844_01.pdf https://etd.uum.edu.my/8887/3/s815844_referrences.docx
_version_	1747828482781478912

Goods and services tax (GST) and its potential impacts on Malaysian inflation

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