Changes of consumption behavior after GST in Kelantan

Good and Services Tax (GST) has become a hot topic recently in the mouth of cafe house and some restaurants. The system was introduced to replace the old taxation system of Value-Added Tax (VAT). At early stage of introduction, consumer view GST has burden their cost of living as the tax imposed increases the price of most goods ad services in daily consumption. However, there are some parties who support the implementation as they see the new GST can greatly support the revenue stream and be able to improve the current economic crisis in Malaysia. The difference perception in between has lead to confusing situation within the nation. This study purpose to investigate how the GST will affects consumers in term of their daily consumption behavior. Researcher wants to know whether consumers will change to support GST imposed goods or be reluctant to pay for new tax. Respondents were picked among Kelantan consumer and 384 sets of questionnaires were distributed through university students. In this research, frequency distribution analysis and Pearson correlation analysis were ran by Statistical Package for Social Science (SPSS) to analyze on data. Result from the finding shows that all three independent variables namely consumer perception, consumer readiness and consumer acceptance have positive relationship with dependent variable of consumption behavior after GST. Analysis also proves that consumer readiness has the strongest influences on consumption behavior followed by consumer perception and consumer acceptance