Examining the Feasibility and Implications of Carbon Tax in Malaysia: An Analysis of Anticipated Adverse Effects and Public Acceptance

This article discusses the potential implementation of a carbon tax in Malaysia. It examines the expected adverse effects of implementing such a policy, particularly focusing on the projected increase in electricity and fuel costs, which could affect both businesses and households. The main argument presented here is that a judiciously designed carbon tax policy, accompanied by a public information campaign explaining the allocation of revenues aimed at alleviating the impacts of escalating energy and fuel costs for low-income taxpayers and businesses has the potential to increase the acceptance of a carbon tax among Malaysian public and business. This, in turn, can help Malaysia move towards a sustainable and resilient future, where environmental considerations and economic growth are in harmony.