4 factor that lead to high proportion of arrears in collecting the

assessment tax :

Local government financial autonomy refers to the ability of local government

jurisdiction to set tax rates, local government can be decide how rate tax their
want to the jurisdiction area example assessment tax because difference of
local government is a difference amount it is depends on the urbanization
such as if u living in Kuala Lumpur tax is high than rural area. It’s means more
urban u place more tax to pay .local government can establish the revenue
base without outside influence as well as having the ability to provide the
service levels that are demanded by the jurisdiction citizens. Demand by
jurisdiction is deference example in urban demand by people their want
swimming pool, Gym but in rural area they want street lamp, clean water flow,
tar road. Financial autonomy also relates to the ability of local government to
raise the revenues from the local economy and to determine how to spend
those revenue. The power to improve revenue example DBKL the higher local
government they have power to invest what they want to generate income
different between Jasin, Melaka because they have small ability to invest.
Example DBKL can invest in program beautiful city Kuala Lumpur, tourist
sector and many factory industry to Local Government revenue.

They do not deem local government an important institution.

In Malaysia local government located in the lowest institution, the upper
located is federal government and the middle is state government. So due to
local government is lowest level and the power decentralization from the state
government, people not know what is local government and their task, so
people do not care about local government, when local government want to
collect tax people do not pay because they feel the tax not important to pay,
this because people feel cannot get the important thing, this occur because
local government did not popular and not many information about them task of
local government, some people in Malaysia their confuse about local
government task, councilor and also Yang Berhormat for example this is
occur in my self before i study about the local government, I did know what
task local government and the power about local government. So local

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 government more provide information about their self to people realize local
government is very important institution because they provide many facilities
to people in jurisdiction area. For example lamp street, collection garbage,
drain maintenance, recreation park maintenance so local government very
close with the people want or problem people about the environment. Maybe
people also confuse about the task of local government because they cannot
use uniform of local government for example when workers collecting garbage
or make drain maintenance they use t-shirt with symbol contractor they not
bring name of local government. So when people not revealed about the
interest of local government due people do not pay the tax and deem local
government not important institution. Some people they know about the local
government and the important of institution of local government but their feel
local government is provide wasted thing and more to important thing their
staff. This occur because they do not know more about local government,
their just listen the members story for example their members complain local
government make a beautiful signboard and provide the beautiful lamp at
town is wasted people money. So the people directly give negative perception
to local government, they did not to google, read and research about the local
government, and why local government make this. They cannot realize the
local government make this about to give beautiful in town to people in
jurisdiction area feel comfortable to stay at this area and this to as a
appreciation to people as a taxpayer and also to encourage tourist come to
the area to raise the revenue of local government for example in Melaka
country, directly to give people revenue in business but people do not deem
local government is an important institution.

There is lack of enforcement

People do not pay because the lack of enforcement some people in Malaysia
feel local government implement their task using corruption example tender,
they feel local government just provide tender to contractor give corruption to
local government, so they feel not satisfied about the attitude of local
government. Though the local government using the 171 local government act
but people do not know what is 171 local government act because local
government not popular in Malaysia, they know local government just only

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 popular in corruption. People suppose the local government corruption
because they do not know the local government divide area by the state
government, so every local government have their jurisdiction area and work
up to the district or municipal council efficiency. People always see the some
area local government give more facilities and some area is lack facilities. For
example collecting garbage from local authority every day some area pick up
trans 6 times in one week and some area just 3 times for one week. So
perception in eye of people local government not fail and get corruption. Due
this issue people do not pay assessment tax. So local government must
always give efficiency service to give positive view in eye of people. The other
lack of enforcement is local government did not enough staff, this because
local government hire and pay own their staff, so if local government not have
many revenue, they did not able to pay or hire more staff. So they did not
enough staff to go one house to one house to collect who do not pay the
assessment tax . When limited and occur this problem staff local government
take more time to collect the assessment tax so plus with charge the amount
will be a lot and the people do not pay because their feel a lot to pay and give
the burden to people. This occur because one of the municipal council have
150,000 resident and district council have less more 150,000 resident if local
government have limited staff they do not settle the problem due to problem in
local government people not to realize to pay assessment tax . people in
Malaysia must be play their role as taxpayer.

Accessibility and distance for payment

This means people want to pay but have a barriers people live in rural
area,they cannot have facilities for example they are far from the post office,
bank or local government office so they have problem to make a payment.
Normally the rural area not have knowledge to using the advance technology
such as local government have cooperation with banking so they just pay with
thru online banking, but in rural area they did not know how to use the online
banking because some of the rural area not goods to reading so how them
using the online method. And maybe they can ask a child who is a good
reading and know about advanced technology but in the area not have good
line internet. So the barriers to rural area make a payment for example in

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 Kampung Nitar, Mersing this is a rural area so if they want to make payment
they must go to local government Mersing, so from Nitar to Mersing so very
far, when they go to Mersing to buy some basic daily only 2 times in one
month, so some time they forgot to pay the assessment tax. Some times old
person they did not use banking online or what ever medium local
government make in advance technology, because in the their grow up this
technology did not exist, so they feel this technology is cannot believe, they
usually will go to ride a motorcycle to make a payment at office local
government. When they old or illness they cannot have transportation to bring
them go to local government office, so this is the one of why people do not
pay assessment tax. Other barriers now days is due to covid-19 many people
have a problem to make a payment some people want to make payment but
the time is suitable to them,the office of local government close due to covid-
19 quarantine and other people not enough money to make payment due to
covid-19 because the business not run for long time so they have limited in
money, the money to be used for more importance thing such as for children
and for family eat or some people lost the job this also one barriers to people
make a payment.

No incentives for paying on time

To encourage the taxpayer to paid, local government make more incentive, so
people not interested to make pay assessment tax because local government
not improve the tax collection whereby early birds. Early birds is to encourage
people pay early in every years, local government can implement if people
pay all total assessment tax for one years they can get many souvenirs by
local government this because in Malaysia, to pay assessment tax people can
pay 2 time in one years for 1/2 years in 28 February and for the half of in the
years in august 8. so if the people make a payment for total one years, they
cannot have interested if local government not provide with souvenirs. The
local government must be have incentives for paying on time such as provide
pen, books, dairy, calendar, towel, umbrella depending on the local
government budget to encourage people to make payment early and full
settlement. This will get easy to local government because they cannot to
come to home to make sure people pay the assessment tax and must provide

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 warning latter. But some local government they not teat there is their promise
for example people want to pay all assessment tax for one years but the local
government inform that the souvenirs is finish or out of stock, so people feel
frustrated and also the people just pay for half years this because local
government not keep their promise. So people not pay assessment tax
because not have motivated when no incentive for paying on time. This occur
because some people feel the incentive such as luck draw or secret gift is a
motivated to them. Some people want to pay but wait for the local government
make a promotion give rebate. This because they feel more profitable and
give them feel want to pay. So local government must take incentives to make
more promotions to encourage people want pay on time.

The conclusion is local government have the power to collect their tax, but
they have limited power to use the money, because they must make a
permission from state government. Local government must make more
incentives to encourage people to pay the assessment tax and local
government must be more imposed their self to people know who is local
government in Malaysia.

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