PERCEPTIONS OF MALAYSIAN CONSUMERS REGARDING THE RE-IMPLEMENTATION OF GOODS AND SERVICE TAX (GST) AND ITS IMPACT ON SPENDING BEHAVIOR

Abstract

This study examined the mediating effect of consumers’ awareness and perception on the re-implementation of the GST on consumer spending behaviour in Malaysia. The study involved 537 respondents in the online survey. Findings reveal that the GST rate and the tax system’s complexity positively influence consumers’ awareness and perception towards the re-implementation of GST. Additionally, demographic factors, consumer awareness and perception significantly impact on consumer spending behaviour. Interestingly, consumer awareness mediates the relationship between tax rate and consumer spending behaviour, but not consumer perception. Thus, this provides insights to various stakeholders such as scholars, consumers, industry players and the Malaysian Government.