Optimization model for consumption taxation in Malaysia: a case study of goods and services tax

This thesis describes the development of an optimization model and its application for consumption taxation in Malaysia. Its main idea was to propose the model, which is an individual model, linked together with firm and government behaviours, in the case of taxation in Malaysia, where goods a...

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Main Author:	Razali, Nurul Farhani
Format:	Thesis
Language:	English English English
Published:	2020
Subjects:	HJ2240-5908 Revenue Taxation Internal revenue
Online Access:	http://eprints.uthm.edu.my/1126/1/24p%20NURUL%20FARHAINI%20RAZALI.pdf http://eprints.uthm.edu.my/1126/2/NURUL%20FARHAINI%20RAZALI%20COPYRIGHT%20DECLARATION.pdf http://eprints.uthm.edu.my/1126/3/NURUL%20FARHAINI%20RAZALI%20WATERMARK.pdf
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spelling	my-uthm-ep.11262021-09-30T04:11:43Z Optimization model for consumption taxation in Malaysia: a case study of goods and services tax 2020-08 Razali, Nurul Farhani HJ2240-5908 Revenue. Taxation. Internal revenue This thesis describes the development of an optimization model and its application for consumption taxation in Malaysia. Its main idea was to propose the model, which is an individual model, linked together with firm and government behaviours, in the case of taxation in Malaysia, where goods and services tax (GST) is considered. For all the median household income groups of T20, M40, and B40 being studied, the consumption levels for the current and future periods are set to be the decision variables. In the proposed model, the respective utility function was maximized, where the related budget constraints were satisfied. It was highlighted that, some firm behaviours affected the individual’s utility level, while the government consumption covered both individual and firm. The Lagrange multiplier method was applied to solve the proposed model. The first-order necessary conditions for the model were derived and the computational solutions were obtained in the Excel spreadsheet environment, with the consumption tax varied in the range of 5 to 7 percent. The results obtained revealed that, all of the individual’s populations were burdened by the GST implementation, while the government consumption increased. It was also showed that, the appropriate consumption tax rate for the individual and for the government is 5 percent and 7 percent, respectively. Moreover, since there were three situations considered for tax reform, namely, varying the consumption tax rate, cutting the real property gains tax rate and varying the transfers, it is expected that, the Malaysia taxation policy guidelines could be further improved. In conclusion, the optimization model on the consumption taxation in Malaysia was proposed. Besides the Lagrange multiplier method was successfully applied to solve the optimization model. Lastly, the usefulness of the proposed optimization model for Malaysia was successfully validated. The findings of this study could be used to provide a useful guideline for setting the Malaysian consumption taxation policy in the future. 2020-08 Thesis http://eprints.uthm.edu.my/1126/ http://eprints.uthm.edu.my/1126/1/24p%20NURUL%20FARHAINI%20RAZALI.pdf text en public http://eprints.uthm.edu.my/1126/2/NURUL%20FARHAINI%20RAZALI%20COPYRIGHT%20DECLARATION.pdf text en staffonly http://eprints.uthm.edu.my/1126/3/NURUL%20FARHAINI%20RAZALI%20WATERMARK.pdf text en validuser mphil masters Universiti Tun Hussein Onn Malaysia Fakulti Sains Gunaan dan Teknologi
institution	Universiti Tun Hussein Onn Malaysia
collection	UTHM Institutional Repository
language	English English English
topic	HJ2240-5908 Revenue Taxation Internal revenue
spellingShingle	HJ2240-5908 Revenue Taxation Internal revenue Razali, Nurul Farhani Optimization model for consumption taxation in Malaysia: a case study of goods and services tax
description	This thesis describes the development of an optimization model and its application for consumption taxation in Malaysia. Its main idea was to propose the model, which is an individual model, linked together with firm and government behaviours, in the case of taxation in Malaysia, where goods and services tax (GST) is considered. For all the median household income groups of T20, M40, and B40 being studied, the consumption levels for the current and future periods are set to be the decision variables. In the proposed model, the respective utility function was maximized, where the related budget constraints were satisfied. It was highlighted that, some firm behaviours affected the individual’s utility level, while the government consumption covered both individual and firm. The Lagrange multiplier method was applied to solve the proposed model. The first-order necessary conditions for the model were derived and the computational solutions were obtained in the Excel spreadsheet environment, with the consumption tax varied in the range of 5 to 7 percent. The results obtained revealed that, all of the individual’s populations were burdened by the GST implementation, while the government consumption increased. It was also showed that, the appropriate consumption tax rate for the individual and for the government is 5 percent and 7 percent, respectively. Moreover, since there were three situations considered for tax reform, namely, varying the consumption tax rate, cutting the real property gains tax rate and varying the transfers, it is expected that, the Malaysia taxation policy guidelines could be further improved. In conclusion, the optimization model on the consumption taxation in Malaysia was proposed. Besides the Lagrange multiplier method was successfully applied to solve the optimization model. Lastly, the usefulness of the proposed optimization model for Malaysia was successfully validated. The findings of this study could be used to provide a useful guideline for setting the Malaysian consumption taxation policy in the future.
format	Thesis
qualification_name	Master of Philosophy (M.Phil.)
qualification_level	Master's degree
author	Razali, Nurul Farhani
author_facet	Razali, Nurul Farhani
author_sort	Razali, Nurul Farhani
title	Optimization model for consumption taxation in Malaysia: a case study of goods and services tax
title_short	Optimization model for consumption taxation in Malaysia: a case study of goods and services tax
title_full	Optimization model for consumption taxation in Malaysia: a case study of goods and services tax
title_fullStr	Optimization model for consumption taxation in Malaysia: a case study of goods and services tax
title_full_unstemmed	Optimization model for consumption taxation in Malaysia: a case study of goods and services tax
title_sort	optimization model for consumption taxation in malaysia: a case study of goods and services tax
granting_institution	Universiti Tun Hussein Onn Malaysia
granting_department	Fakulti Sains Gunaan dan Teknologi
publishDate	2020
url	http://eprints.uthm.edu.my/1126/1/24p%20NURUL%20FARHAINI%20RAZALI.pdf http://eprints.uthm.edu.my/1126/2/NURUL%20FARHAINI%20RAZALI%20COPYRIGHT%20DECLARATION.pdf http://eprints.uthm.edu.my/1126/3/NURUL%20FARHAINI%20RAZALI%20WATERMARK.pdf
_version_	1747830742475341824

Optimization model for consumption taxation in Malaysia: a case study of goods and services tax

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