Research Article Published 19 December 2019

Assessment of Potential Non-Tax Revenue in Malaysian Local Authorities

How to Cite

How to Cite

Berahim, N., Jaafar, M. N., & Zainudin, A. Z. (2019). Assessment of Potential Non-Tax Revenue in Malaysian Local Authorities. Journal of Business Management and Accounting, 9(2), 1-21. https://doi.org/10.32890/jbma2019.9.2.8722
Nur Berahim
Department of Real Estate, Faculty of Geoinformation and Real Estate, Universiti Teknologi Malaysia, Skudai, Johor, Malaysia
Mohd Nadzri Jaafar
Department of Real Estate, Faculty of Geoinformation and Real Estate, Universiti Teknologi Malaysia, Skudai, Johor, Malaysia
Ainur Zaireen Zainudin
Department of Real Estate, Faculty of Geoinformation and Real Estate, Universiti Teknologi Malaysia, Skudai, Johor, Malaysia
Full text
PDF View full text 653 KB · 21 pages XML JATS full text 89 KB · machine readable HTML Read online 68 KB
DOI 10.32890/jbma2019.9.2.8722 Cite this article
Share this article
Citations
4
OpenAlex, highest of the sources checked
Reads
484 +2
Abstract + full text
Downloads
516 +4
PDF and XML
Percentile
93th
By citations, works of the same year

Article

Abstract

Non-tax revenue trends and their potential have received less attention than property tax, which is the primary source for most Malaysian local authorities (LAs). This paper highlights the examination conducted on potentials and strategies adopted by each LA investigated to maximize return from non-tax revenue. In doing this, qualitative approach using secondary data acquired from financial reports and primary data from in-depth interviews was employed. Ten LAs were selected through purposive sampling. The trend of revenue collection among the selected LAs and the strategies to improve non-tax revenue collection through thematic analysis are highlighted. The analysis of the trend of local authorities’ revenue reveals that non-tax revenue remains the second most important after the tax revenue. However, Pulau Pinang City Council (MBPP) is the only LA that records an average of non-tax revenue exceeding 50 per cent of its total internal revenue. This study has also found that the divergence among the local authorities’ non-tax revenue collection is due to the revenue improvement strategies adopted by each local authority. Therefore, eight recommendations are made to improve non-tax revenue. Though this study is limited to 10 LAs as sample, the successful optimizing strategies highlighted from the study can represent an efficient model for other LAs, in improving their non-tax collection.

Keywords
Authority Non-tax Revenue Optimizing Strategy

Metrics & impact

Citations by source

Harvested 08-09-2026

Counts differ by index because each source crawls a different corpus. Crossref counts only registered reference lists; Google Scholar includes theses, preprints and grey literature.

OpenAlex
4
Open corpus, updated daily View →
OpenCitations
0
Open references only View →
Crossref
0
Deposited reference lists only View →
Scopus
0 Not indexed
Indexed titles only View →
Google Scholar
Publishes no citation count that can be read automatically.
Includes theses and preprints Search →
Dimensions
Publishes no citation count that can be read automatically.
Includes policy documents Search →

Citations over time

New citations recorded in each year, as reported by OpenAlex.

2
2
0
0
0
0
0
0
2019 2020 2021 2022 2023 2024 2025 2026

Reads & downloads

Abstract views 484
PDF downloads 516
XML downloads 0
Full-text HTML 0
Counted under COUNTER Release 5 rules; known robots excluded.

Attention beyond citation

Citation percentile 93th
Field-weighted citation impact 0.52
Works this article cites 28

From OpenAlex. A field-weighted impact of 1.00 is the world average for work of the same field, type and year. No Altmetric key is configured, so news, policy and social attention are not shown.

Identifiers
DOI · 10.32890/jbma2019.9.2.8722
OpenAlex · W3007433412

References

References 43
Deposited to Crossref with the article DOI
  1. Alm, J. (2013). A Convenient Truth: Property Taxes and Revenue Stability. Cityscape: A Journal of Policy Development and Research, 15(1), 243-245.
  2. Amborski, D. (2004). Application of Municipal User Charges in Canada, Experience and Implication for Other Jurisdiction, the 12th NISPAcee Annual Conference. Vilnius, Lithuania: Hotel Reval Lietuva.
  3. Atan, R. et al (2010). Financial Performance of Malaysian Local Authorities: A Trend Analysis. International Conference on Science and Social Research (CSSR). Kuala Lumpur, Malaysia: Seri Pacific Hotel.
  4. Ayupov, A. A. & Kazakovtseva, M.V. (2014). Management of Financial Stability of the Non-Tax Income of Regional Budgets. Procedia - Social and Behavioral Sciences. 131, 187-192.
  5. Braun, V. & Clarke, V. (2012). Thematic Analysis. In Cooper, H. (Vol. 2), APA Handbook of Research Methods in Psychology: Vol. 2. Research Designs. The American Psychological Association.
  6. Caroll, D. A. (2009). Diversifying Municipal Government Revenue Structures: Fiscal Illusion or Instability? Public Budgeting & Finance, 29: 27-48.
  7. Chen, G. (2017, July 28). Councils determined to recycle food waste. The Star Online. Retrieved from https://www.thestar.com.my.
  8. Collin, J. P., Léveillée, J., Rivard, M. & Robertson, M. (2003). Municipal Organization in Canada Tradition and Transformation, Varying From Province to Province. Institut de Ciències Polítiques i Socials (ICPS).
  9. Dubravka, J. A. (2007). Tackling the Problem of Inadequate Financing for Local Development: The case of Croatia in Sylvain Giguère (ed.). Local Innovations For Growth in Central and Eastern Europe, OECD Publishing.
  10. Fjeldstad et al (2003). Local Government Finances and Financial Management in Tanzania (21050). Bergen, Norway: Chr. Michelsen Institute (CMI).
  11. Germân, L. & Glass, E. (2016). Non-Tax Own-Source Municipal Revenues. (2nd Ed). Finance for Cities Leaders Handbook (pp 66-81). Nairobi, Kenya. United Nations Human Settlements Programme (UN-Habitat).
  12. Gideon, Z. & Alouis, C. (2013). The Challenges of Self-Financing in Local Authorities: The Case of Zimbabwe. International Journal of Humanities and Social Science. 3(11), 233-245.
  13. Hanis, M. B.,Trigunarsyah, B. & Susilawati, C. (2010). Elements of public asset management framework for local governments in developing countries. In: 8th International Conference on Construction and Real Estate Management (ICCREM), Brisbane, Australia: Royal on the Park Hotel.
  14. Hussain, A.A. & Brahim, M. (2006). Administrative Modernization in the Malaysian Local Government: A Study in Promoting Efficiency, Effectiveness and Productivity. Pertanika J. Soc. Sci. & Hum. 14(1), 51-62.
  15. Ibrahim, F. W. (2014), Local Public Goods and Citizen Satisfaction : A Case Study of District of Sik, Kedah, Malaysia. 5th Asia-Pacific Business Research Conference, Kuala Lumpur, Malaysia: Hotel Istana.
  16. Ibrahim, F. W. & Abd Karim. M. Z. (2004). Efficiency of Local Governments in Malaysia and Its Correlates. International Journal of Management Studies (IJMS), 11(1), 57-70.
  17. Januta, D. (1968). The Municipal Revenue Crisis: California Problems and Possibilities. California Law Revenue, 56(6), 1525-1558.
  18. Jolicoeur & Barret (2004). Coming of Age, Strategic Asset Management in the Municipal Sector. Journal of Facilities Management, 3(1), 41–52.
  19. Kaganova, O. & Nayyar-Stone, R. (2000). Municipal Real Property Asset Management: An Overview of World Experience, Trends and Financial Implication, Journal of Real Estate Portfolio Management, 6(4), 307-326.
  20. Malaysian Productivity Corporation, MPC (2016). Rationalising Revenue Raising-Business Licences (Local Government). A discussion paper prepared for Malaysian Productivity Corporation, MPC. Retrived from http://www.mpc.gov. my/smart-regulation/ on 9 July 2018, 11 am.
  21. Manganelli, B. & Tajani, F. (2013). Optimised Management for the Development of Extraordinary Public Properties. Journal of Property Investment & Finance. 32(2), 187-201.
  22. McMillan, M. & Dahlby, B. (2014). Do Local Governments Need Alternative Sources of Tax Revenue? An Assessment of the Options for Alberta Cities. SPP Research Paper. 7(26), 1-34.
  23. Ministry of Rural Development (2018). Basic Data Ministry of Rural Development. Retrived from http://www.rurallink.gov.my/en/citizen/desa-information/statistic/ on 4 March 2019, 10.00 am.
  24. Mohamed, N & Atan, R. (2006). Financial Performance of Local Authorities with Emphasis of Deficits. The Proceedings of International Conference on Local Government, Kota Kinabalu, Sabah.
  25. Mohamed, N., Mohd Yusof, M. H. & Ab Majid, R. (2013). The Presentation Formats of Malaysian Local Authorities’ Financial Statements. International Conference on Advanced Computer Science and Electronics Information (ICACSEI). Beijing, China.
  26. Mohd Talib, N. F., Mohd Ismail, R.A. & Adelabu, S. A. (2017). Transparency in Malaysia Local Government Administration. The Overview of Internally Generated Revenue (IGR). International Journal of Business and Management. 1(1), 22-27.
  27. Mosio, A. (2002). Essays on Finnish Municipal Finance and Intergovernmental Grant. Government Institute for Economic Research. ISSN: 0788-5008.
  28. Nakamura, K. & Tahira, M. (2008). Distribution of Population Density and the Cost of Local Public Services: The Case of Japanese Municipalities. Working Paper No. 231, Faculty of Economics, University of Toyama.
  29. Park, S. (2017). Local revenue structure under economic hardship: Reliance on alternative revenue sources in California counties, Local Government Studies, 43(4), 645-667.
  30. Rode, S. (2011). Challenge of Financing Physical Infrastructure and Services in Brihanmumbai Municipal Corporation. MPRA paper 20 30017, Retrieved from http://mpra.ub.uni-muenchen.de/30017/ at 24/10/2014.
  31. Salleh, D. & Siong, H. C. (2008). The Involvement of Private Sector in Local Infrastructure in Local Infrastructure Development in Malaysia. Jurnal Alam Bina. 11(1), 73-100. Shah Alam City Council (MBSA) Strategic Plan 2016-2020. Retrieved from http://www.mbsa.gov.my/
  32. Shirimia, L. & Rutamu, A. (2004). Alternative sources of revenues for financial sustainability, a case of local government in Rwanda. ARD Inc.
  33. Shoup, D. C. (2004). The Ideal Source of Local Public Revenue. Regional Science and Urban Economics. 34, 753-784.
  34. Singaravelloo, K. (2008). Local Government in Malaysia: Back to Basis and the Current Scene. Journal of Malaysian Chinese Studies. 11, 77-96.
  35. Slack, E. (1996). Financing Infrastructure: Evaluation of Existing Research and Information Gaps. Report prepared for Canada Mortgage and Housing Corporation.
  36. Solé-Ollé, A. & Hortas-Rico, M. (2010). Does urban sprawl increase the costs of providing local public services? Evidence from Spanish municipalities. Urban Studies 47, 1513–1540.
  37. Spearman, K. (2007). Financial Management for Local Government. (Volume 1). USA. Routledge, Taylor and Francis Group.
  38. Tayib, M. Coombs, H. M. & Ameen, J. R. M. (1999). Financial Reporting by Malaysian Local Authorities: A Study of the Need and Requirements of the Users of Local Authority Financial Accounts. The International Journal of Public Sector Management. 12(2), 103-120.
  39. Tschekalin, J. (2011). User fees: Moving Forward in Adjalan –Tosorontio. AMCTO. Vazquez. J. M. Mobilizing Financial Resources for Public Service Delivery and Urban Development. In: UN-HABITAT. The Challenge of Local Government Financing in Developing Countries. Kenya: United Nations Human Settlements Programme 2015. 14-33.
  40. Wales Audit Office (2016). Charging for services and generating income by local authorities. Auditor General of Wales. Cardiff.
  41. Warner, M. E. & Pratt, J. E. (2005). Spatial Diversity in Local Government Revenue Effort Under Decentralization: A Neural-Network Approach. Environment and Planning C: Government and Policy. 23, 657-677
  42. Wong, L. (2014). Enhancing Local Government Revenue Through Various Sources. Konvensyen PBT Sabah. Promenade Hotel, Kota Kinabalu. 21-22 Oktober. Retrieved from http://ww2.sabah.gov.my/mlgh/Lampiran/PPN_Increasing% Revenue.pdf on 4 November 2018, 12.30pm.
  43. Young et al (2018). A methodological guide to using and reporting on interviews in conservation science research. Methods in Ecology and Evolution; 9:10-19.