Fiscal simplicity, public trust, and electric vehicle adoption: behavioral evidence from tax policy in Indonesia and Malaysia

Abstract

This study examines how fiscal simplicity in Electric Vehicle (EV) taxation shapes taxpayer compliance and adoption behavior through the development of public intangible capital, including perceived fairness, trust, and environmental alignment. Using a comparative mixed-method design, the research integrates behavioral evidence from 126 Indonesian EV users with a policy analysis of Malaysia’s zero-tax EV framework. The quantitative component applies the Theory of Planned Behavior, Technology Acceptance Model, and Value–Belief–Norm framework to model compliance behavior, while the qualitative analysis evaluates fiscal structure and administrative transparency across national contexts. The findings show that perceived environmental value and digital tax convenience significantly increase voluntary compliance, whereas perceived fees and general environmental concern are not significant predictors. Economic motivations strengthen environmental perception, suggesting that fiscal incentives operate through behavioral trust rather than cost reduction alone. The comparative analysis suggests that Malaysia’s comprehensive tax exemption and administrative simplicity may reinforce institutional trust through structural clarity, whereas Indonesia’s partial fee structure relies more heavily on individual behavioral motivation. These contrasting mechanisms demonstrate that fiscal design functions as a social infrastructure that shapes public trust and cooperative behavior. The study contributes to research on sustainable mobility governance by linking fiscal policy, behavioral compliance, and public trust within a unified framework. It highlights that policy simplicity and transparency are not merely administrative choices but strategic tools for building long-term legitimacy and supporting environmentally responsible consumption. The findings provide evidence that effective EV taxation requires aligning financial incentives with psychological and institutional dimensions of trust to sustain voluntary compliance and green transition.