The government raises the e-invoice exemption threshold from RM500,000 to RM1 million to ease SME burdens, and boosts tax refund funds to RM4 billion
KOTA KINABALU: The government will raise the e-invoice exemption threshold from RM500,000 to RM1 million beginning next year to ease the burden on small and medium enterprises.
Prime Minister Datuk Seri Anwar Ibrahim said the decision followed direct feedback from small business owners over the system’s implementation costs.
“So we reviewed it quickly. After carrying out the assessment, the Cabinet made a preliminary decision yesterday,” he said during the ‘Sentuhan MADANI Bersama Rakyat Sabah’ programme at the Sabah International Convention Centre.
Anwar said the matter was presented to ensure next year’s rollout is more realistic and orderly for small businesses adapting to digital systems.
He also announced an immediate measure to address delayed tax refunds, which have frustrated compliant taxpayers.
The Federal Government will increase the allocation for tax refunds from RM2 billion to RM4 billion this December to expedite outstanding payments.
Anwar reiterated the Federal Government’s commitment to implementing Sabah’s 40% revenue claim as provided under the Malaysia Agreement 1963.
“This is the strength of the MADANI Government. Normally after an election, we take a breather. But not this time,” he said.
He said the Technical Committee, chaired by Treasury secretary-general Datuk Johan Mahmood Merican, has held preliminary meetings with Sabah state secretary Datuk Seri Safar Untong.
The full committee meeting is expected before mid-January once several Cabinet vacancies are resolved.
“We will set clear parameters — the amount, payment phases within a year and so on,” Anwar stated.
He stressed that clear parameters are crucial to ensure payments are made orderly and are legally sound.
Certain aspects may require legal amendments, as seen during the transfer of electrical regulatory powers to Sabah.
Anwar added that discussions on Sabah’s revenue claim should not be viewed as political rhetoric, as the government is committed to implementing it transparently. – Bernama
