Unveiling Perspectives on Carbon Tax in the Carbon Emissions Industry

Abstract

The pressure of climate action becomes more crucial, especially to achieve the goals outlined in the Paris Agreement. In the Paris Agreement, Malaysia has committed to reducing greenhouse gas emissions across the economy by 45% in 2030. Malaysia has taken proper action to ensure the reduction of carbon emissions. Still, it only focuses on tax incentives and motivations toward a clean environment without involving tax penalties for the emitters. Policymakers worldwide are now changing to tax-based policies to lessen carbon emissions. Malaysia is also expected to implement the carbon tax soon. This study aims to determine Malaysia's crucial carbon emission sector and investigate the perception of implementing a carbon tax in Malaysia. This study uses desk research and questionnaires to collect data from the industry, the Inland Revenue Board of Malaysia, and the public. This study has successfully identified key sectors responsible for significant carbon emissions and gathered respondents' perceptions towards implementing a carbon tax. The implications of the study are also highlighted.