Model penjanaan hasil bukan cukai melalui eksploitasi aset tak alih pihak berkuasa tempatan

Abstract

Local Authorities in Malaysia may extensively exploit their immovable assets in order to address the problem of limited financial resources. Immovable assets such as land, buildings and infrastructure generate revenue to Local Authority (LA) in the form of property tax and non-tax revenue. However, previous studies have shown that the growth of tax revenue is small and slower than the non-tax revenue. In addition, the LA is urged to seek other sources of revenue instead of continuing to rely on property taxes. The only alternative source available to LA in Malaysia is through the non-tax revenue. However, studies on the exploration of impact and the significance of non-tax revenue as a source of LA revenue in Malaysia are very limited. Therefore, it is necessary to study the current revenue trends and future potential of non-tax revenue through the exploitation of immovable assets as a profitable source of revenue to LA. As such, the first objective of this study is to determine LA's current financial trend of non-tax revenue. Secondly is to analyze the basic concept of non-tax revenue management and the factors affecting the generation of non-tax revenue from LA’s immovable assets. Thirdly to analyze the improvement strategies to increase non-tax revenue generated from immovable assets and fourthly to develop a model of non-tax revenue generated through the exploitation of immovable assets in Malaysian LAs. This study is a qualitative study with data collection methods through document review and semi-structural interviews on 15 selected LAs through purposive sampling techniques. Revenue-based indicators were used to analyze current trend of non-tax revenue among LA. The results showed that more than 50% of the total own-generated revenue for Kuala Lumpur City Hall (DBKL) and the Penang Island City Council (MBPP) were contributed by their non-tax revenue. This finding has proven the notion that property tax revenue as a major source of income for all LAs in Malaysia is inaccurate. Meanwhile, through the thematic analysis, there are three main components that LAs need to improve in order to increase income generation of non-tax revenue, which are the sources, methods and strategies, as well as the monitoring and evaluation. These three components form a non-tax revenue generation model through the exploitation of immovable asset, becoming a new discovery that may support the improvement of LAs financial resources through non-tax revenue.