The government increases tax refund allocation to RM4 billion to expedite payments to taxpayers, with LHDN starting phased refunds from Sunday
PUTRAJAYA: The government has doubled its tax refund allocation to RM4 billion to expedite outstanding payments to taxpayers.
Prime Minister Datuk Seri Anwar Ibrahim said the increase from RM2 billion was necessary as the government should not owe money to the public.
The Inland Revenue Board of Malaysia (LHDN) will commence the phased processing of refunds to eligible taxpayers starting Sunday.
Anwar, who is also Finance Minister, said the Ministry of Finance is reviewing whether the RM4 billion allocation is sufficient and will increase it if necessary.
“If the amount is insufficient, Finance Minister II Datuk Seri Amir Hamzah Azizan and Treasury secretary-general Datuk Johan Mahmood Merican are working with the LHDN chief executive officer to assess how the sum should be adjusted,” he said.
He emphasised that this is a matter of conscience, compassion and respect.
Anwar also stated that the government’s debt to companies must be settled as quickly as possible.
He highlighted the need to change past practices where large companies could negotiate reductions while smaller businesses paid in full.
The increase follows complaints from small business owners about delays in tax refunds.
Regarding national debt, Anwar said it is a legacy from the previous administration and cannot be resolved in the short term.
He reaffirmed that institutional reforms remain a priority for the government.
This includes implementing the Fiscal Responsibility Act to strengthen public financial management and boost investor confidence.
Anwar added that parliamentary reforms are being expanded, granting more authority to opposition MPs to chair committees.
“Several reform initiatives will be rolled out next year, including the establishment of an Ombudsman,” he said.
The Ombudsman is currently being drafted by relevant ministries to enhance public sector accountability.
Furthermore, the Government Service Efficiency Commitment Act 2025 will apply pressure on civil servants to improve performance.
Anwar was speaking at the closing of the three-day Rancakkan MADANI Bersama Malaysiaku programme in Putrajaya.
The programme offered over 300 touchpoint services, a career carnival, and family entertainment.
It serves as the administration’s annual platform for reporting its achievements directly to the people. – Bernama
