Impact of the Government Service Tax (GST) on the Malaysian takaful industry: issues and challenges

Malaysia is reputed to be a leader in the Takaful industry within the ASEAN region commanding a market share that exceeds 70 percent of gross Takaful contribution. The industry however is not exempted from the recent implementation of the Malaysian Goods and Services Tax (GST) in April 2015. This st...

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Main Authors: Che Mohd Salleh, Marhanum, Yussof, Sheila Ainon, Abdullah, Nurdianawati Irwani
Format: Article
Language:English
English
Published: Amer Scientific Publishers 2018
Subjects:
Online Access:http://irep.iium.edu.my/47226/
http://irep.iium.edu.my/47226/19/47226_Impact%20of%20the%20Government%20Service%20Tax%20%28GST%29_MYRA.pdf
http://irep.iium.edu.my/47226/2/47226_Impact%20of%20the%20Government%20Service%20Tax%20%28GST%29_WOS.pdf
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author Che Mohd Salleh, Marhanum
Yussof, Sheila Ainon
Abdullah, Nurdianawati Irwani
author_facet Che Mohd Salleh, Marhanum
Yussof, Sheila Ainon
Abdullah, Nurdianawati Irwani
author_sort Che Mohd Salleh, Marhanum
building IIUM Repository
collection Online Access
description Malaysia is reputed to be a leader in the Takaful industry within the ASEAN region commanding a market share that exceeds 70 percent of gross Takaful contribution. The industry however is not exempted from the recent implementation of the Malaysian Goods and Services Tax (GST) in April 2015. This study seeks to examine the specific Shari'ah issues and challenges that may be triggered off by GST application on its operations. An inductive analysis will be undertaken on the relevant sources that justify GST implementation in Takaful, mainly guidelines provided by Customs Department, and also arguments from scholars on the likely contravention of Shari'ah principles with the application of GST. This research will be significant as it will make an in-depth analysis of GST application whilst identifying the areas of non-compliances with Shari'ah. Recommendations will be made for regulators to overcome the Shari'ah issues and challenges that have emerged from its implementation.
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spelling iium-472262020-08-14T01:20:15Z http://irep.iium.edu.my/47226/ Impact of the Government Service Tax (GST) on the Malaysian takaful industry: issues and challenges Che Mohd Salleh, Marhanum Yussof, Sheila Ainon Abdullah, Nurdianawati Irwani HG4001 Financial management. Business finance. Corporation finance. HG8719 Islamic Insurance Takaful Malaysia is reputed to be a leader in the Takaful industry within the ASEAN region commanding a market share that exceeds 70 percent of gross Takaful contribution. The industry however is not exempted from the recent implementation of the Malaysian Goods and Services Tax (GST) in April 2015. This study seeks to examine the specific Shari'ah issues and challenges that may be triggered off by GST application on its operations. An inductive analysis will be undertaken on the relevant sources that justify GST implementation in Takaful, mainly guidelines provided by Customs Department, and also arguments from scholars on the likely contravention of Shari'ah principles with the application of GST. This research will be significant as it will make an in-depth analysis of GST application whilst identifying the areas of non-compliances with Shari'ah. Recommendations will be made for regulators to overcome the Shari'ah issues and challenges that have emerged from its implementation. Amer Scientific Publishers 2018-05 Article PeerReviewed application/pdf en http://irep.iium.edu.my/47226/19/47226_Impact%20of%20the%20Government%20Service%20Tax%20%28GST%29_MYRA.pdf application/pdf en http://irep.iium.edu.my/47226/2/47226_Impact%20of%20the%20Government%20Service%20Tax%20%28GST%29_WOS.pdf Che Mohd Salleh, Marhanum and Yussof, Sheila Ainon and Abdullah, Nurdianawati Irwani (2018) Impact of the Government Service Tax (GST) on the Malaysian takaful industry: issues and challenges. Advanced Science Letters, 24 (5). pp. 3178-3183. ISSN 1936-6612 E-ISSN 1936-7317 https://www.ingentaconnect.com/contentone/asp/asl/2018/00000024/00000005/art00040?crawler=true&mimetype=application/pdf 10.1166/asl.2018.11339
spellingShingle HG4001 Financial management. Business finance. Corporation finance.
HG8719 Islamic Insurance Takaful
Che Mohd Salleh, Marhanum
Yussof, Sheila Ainon
Abdullah, Nurdianawati Irwani
Impact of the Government Service Tax (GST) on the Malaysian takaful industry: issues and challenges
title Impact of the Government Service Tax (GST) on the Malaysian takaful industry: issues and challenges
title_full Impact of the Government Service Tax (GST) on the Malaysian takaful industry: issues and challenges
title_fullStr Impact of the Government Service Tax (GST) on the Malaysian takaful industry: issues and challenges
title_full_unstemmed Impact of the Government Service Tax (GST) on the Malaysian takaful industry: issues and challenges
title_short Impact of the Government Service Tax (GST) on the Malaysian takaful industry: issues and challenges
title_sort impact of the government service tax (gst) on the malaysian takaful industry: issues and challenges
topic HG4001 Financial management. Business finance. Corporation finance.
HG8719 Islamic Insurance Takaful
url http://irep.iium.edu.my/47226/
http://irep.iium.edu.my/47226/
http://irep.iium.edu.my/47226/
http://irep.iium.edu.my/47226/19/47226_Impact%20of%20the%20Government%20Service%20Tax%20%28GST%29_MYRA.pdf
http://irep.iium.edu.my/47226/2/47226_Impact%20of%20the%20Government%20Service%20Tax%20%28GST%29_WOS.pdf