Tax mix impacts economic growth in Malaysia, shaping fiscal revenues.
The article explores how different types of taxes in Malaysia affect economic growth and government revenue. By analyzing data from 1960 to 2016, the researchers found that corporate income taxes have a significant impact on GDP, with a 1% reduction leading to a long-term decrease in GDP. They also discovered that a balanced mix of direct and indirect taxes can support steady revenue streams for the government, even during economic crises. This study highlights the importance of designing an effective tax structure to promote economic growth and fiscal stability in developing countries like Malaysia.