How Tax Officials View the Future of Carbon Tax in Malaysia?

Climate change and natural disasters have become a worldwide issue, threatening the environment, the economy, and human health. The Sixth Intergovernmental Panel on Climate Change (IPCC) report indicates that human activities, such as burning fossil fuels and deforestation, are major sources of carbon emissions. The accumulation of carbon gases in the atmosphere forms a layer that traps heat, leading to global warming and increased frequency of natural disasters. Malaysia has made appropriate efforts to reduce carbon emissions, concentrating mainly on tax incentives and environmental programs rather than implementing a tax mechanism. Policymakers globally are progressively embracing tax-based strategies to reduce carbon emissions. Malaysia is likely to introduce a carbon tax in the near future, adding a new dimension to its environmental strategy. This study seeks to assess the perception of the tax authority, specifically the officers of the Inland Revenue Board of Malaysia (IRBM), regarding the necessity of implementing a carbon tax in Malaysia. This study employs open-ended survey questions to gather in-depth qualitative data from officers within the IRBM, allowing for a more nuanced understanding of their perspectives and insights. This study has successfully uncovered and detailed the tax authority’s perceptions regarding the implementation of a carbon tax, providing valuable insights into their views, concerns, and the potential challenges and opportunities associated with such a policy. The study's implications are thoroughly examined and emphasized, shedding light on the broader impact and significance of the findings