Nur Erma Suryani Mohd Jamel

In Malaysia, the indirect tax environment is evolving fast, and the risk has never been higher. The public perception of Sales and Service Tax (SST) as a business cost aggravates the increase in essential needs prices. Hence, the heavy burden on Malaysians’ income, which ultimately constitutes a big worry and outcry, makes the study relevant.
The study investigates the relationship between selected causes of equity and fairness (tax fairness), certainty (tax burden), accountability to taxpayers, tax knowledge, and public acceptance of SST implementation in Malaysia.
Data were collected through a structured survey among the public in Klang Valley. Respondents were chosen randomly from various locations in public and private sector organizations. A total of 177 out of the 228 completed and received questionnaires are found suitable for further analysis. The study adopts the SmartPLS version 3.3.2 statistical analysis tool to test the four hypotheses formulated.
The study results reveal tax fairness, tax burden, and government accountability are significant and positively relate to public acceptance of SST implementation in Malaysia. This further buttressed that tax fairness, tax burden, and government accountability are critical for public acceptance of SST implementation because of their economic implications. In contrast, tax knowledge is not significant and negatively relates to public acceptance of SST implementation. The effect indicates that tax knowledge is not an essential factor as far as public acceptance of SST implementation is concerned in Malaysia.