KUALA LUMPUR: The Inland Revenue Board has refunded RM9.35 billion in excess taxes to more than three million taxpayers as of June 30, 2025.
This announcement came from the Ministry of Finance in a written parliamentary reply on Tuesday.
Out of the total taxpayers involved, 1.07 million individuals have received their full refunds, amounting to RM2.73 billion.
The reply was issued in response to a query from Chong Chieng Jen regarding the total outstanding tax refund amount.
He had also asked for the reasons behind any delays and the timeline for full disbursement.
The ministry added that corporate tax refunds, which typically involve larger sums, are being prioritised based on the length of delay.
Older cases are being handled first to ensure a systematic process.
This approach aims to ensure all eligible taxpayers receive at least a partial refund within the year.
The remainder will be disbursed either in the same year or the following year.
This schedule depends entirely on the government’s financial position at the time.
Meanwhile, the MOF clarified that the sales tax on low-value goods has been in effect since January 1, 2024.
This tax is not part of the current sales tax review being discussed.
The LVG tax applies to all goods imported from abroad valued at less than RM500.
It specifically targets items sold online or through digital marketplaces by registered sellers.
The ministry made it clear that the LVG tax does not apply to goods that are manufactured locally.
This clarification was in response to a question from Tan Sri Muhyiddin Yassin.
He had inquired about the government’s strategy concerning the expanded SST’s impact on the cost of living.
He also asked about the operational burden this places on micro, small, and medium enterprises.
The MOF emphasised that the LVG tax only affects imported goods sold via registered online platforms.
Locally produced goods remain completely unaffected by this particular tax regulation. – Bernama
