MANAGEMENT AND ACCOUNTING REVIEW

 


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Volume 23 No. 2, August 2024

MANAGEMENT AND ACCOUNTING REVIEW, VOLUME 23 NO. 2, AUGUST 2024
https://doi.org/10.24191/MAR.V23i02-11

Towards an Optimal Green Tax Framework in Malaysia: An Exploratory Study


Natrah Saad1♣, Zaimah Zainol Ariffin1 and Abdul Salam Mas’ud2

1Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia, Sintok, Kedah, Malaysia
2Federal University Dutse, Nigeria



ABSTRACT

The use of tax legislations to encourage sustainability is not an uncommon exercise worldwide (such as in Europe and the US). While it can actually be implemented by providing incentives (for non-polluters) or imposing penalties (for polluters), the use of both carrot and stick approach has been claimed to be the more meaningful and fair approach to industry players and society at large. Malaysia has to date, adopted only the incentives approach in its effort to encourage a green environment. However, evidence of the positive impacts of this kind of approach is not discernible, considering the alarming level of environmental abuse reported in the media nowadays. Hence, this study proposed an optimal green tax framework as an alternative to the current practice, based on interviews with policymakers and industry players. The proposed framework suggests that in order to have an optimal green tax initiative, it should consider the elements of tax penalties, tax incentives, environmental education, continual review of legislation and technology/innovation. As an implication for future research, the study recommends that researchers consider a survey involving a larger group of stakeholders (including representatives from the community and non-governmental organisations) for empirical validation and testing of the framework.

Keywords: Green Tax Framework, Tax Penalty, Polluter-Pay, Environmental Abuse.

ARTICLE INFO
Article History:
Received: 27 June 2023
Accepted: 01 January 2024
Available online: 01 August 2024

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