A study of the process and barriers of property tax revenue generation in local government (a case study of Pasir Gudang Municipal Council)
Property tax collection issues in local governments are an important area of concern in recent years. Similarly, Pasir Gudang Municipal Council is facing serious challenges due the accrual of arrears on property tax. These issues are directly linked to the conducts and compliance behavior of the...
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| Format: | Thesis |
| Language: | English English |
| Published: |
2013
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| Subjects: | |
| Online Access: | http://eprints.uthm.edu.my/1966/1/24p%20MOHAMMED%20AKILU%20UMAR.pdf http://eprints.uthm.edu.my/1966/2/MOHAMMED%20AKILU%20UMAR%20WATERMARK.pdf |
| Summary: | Property tax collection issues in local governments are an important area of concern in
recent years. Similarly, Pasir Gudang Municipal Council is facing serious challenges due
the accrual of arrears on property tax. These issues are directly linked to the conducts
and compliance behavior of the taxpayers which determine the revenue generation of the
local government. Therefore, as a result of high non-compliance behavior of the
taxpayers, the revenue generation capacity of Pasir Gudang Municipal Council has been
declining. This study therefore, makes an effort to investigate the problems of low
property tax revenue generation at Pasir Gudang Municipal Council, Malaysia. Random
sampling technique was used for the data collection required for the study. Nevertheless,
the study adopted a mixed method approach. 300 respondents are targeted which form
the sample size to answer one of the research questions. While the qualitative method
answers the other 3 research questions. However, 264 questionnaires were returned. The
quantitative data analysis employed was simple distribution tables, bar chart and
percentage distribution. On the other hand, thematic network analysis and narration,
photographs and observations were used for qualitative analysis. The study has
discovered that inadequate provisions of infrastructural facilities and services are the
reason for the decline in property tax revenue collection generation in the study area.
Because the findings of study discovered that the taxpayer's expectations were to have
adequate infrastructural facilities and services in the study area but due to the absence of
these requirements most of them evade paying the property tax. Through the findings of
the study a relationship between public authorities and the taxpayers is established. The
research contribution to knowledge based on the findings of this study is very
significant. The study has established that provision of public amenities (public goods
and services) is a determinant to taxpayers compliance. This can be used as an extension
on Fischer's model of compliance behavior. However, effective public engagement in
the public service delivery and enforcement could yield positive results. |
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