Behavior of Business Operators on GST Implementation

Abstract

Goods and Services Tax (GST) or Value Added Tax (VAT) is believed to be a reliable tax system because it has been successfully implemented in other countries.  However, there is a few compliance issues on the implementation of GST in Malaysia.  Therefore, the purpose of this study is to investigate the behaviour of the business operators towards GST system.  Behavior indicator plays a vital role in the study since it lead to the GST compliance or non-compliance.  Qualitative research by interviewing 12 petrol station operators within the context of the theory of reasoned action model were applied.  Thematic analysis was used in analyzing the data collected from the interview session.  The findings of the study reveals that business operators still comply with the system even though the compliance cost is high.  This is because the GST system is one of the government policies thus it is compulsory for them and if not comply, penalty will be imposed.  This findings is very crucial in assessing the successfulness of the impelementation of GST in Malaysia.  It can act as a benchmark for the government when they want to change back to the previous taxation system, Sales Tax and Services Tax (SST).