KOTA KINABALU: The government will raise the e-invoice exemption threshold from RM500,000 to RM1mil beginning 2026 as part of efforts to ease the burden on small and medium enterprises (SME).
Prime Minister Datuk Seri Anwar Ibrahim said the decision was made after the government received direct feedback from small business owners over the cost of implementing the system.
"After carrying out the assessment, the Cabinet made a preliminary decision yesterday (Dec 5). These small and medium businesses felt this would add pressure and costs. I heard them… so small companies will no longer be compelled to implement e-invoicing," he said.
He said this during the 'Sentuhan Madani Bersama Rakyat Sabah' programme at the Sabah International Convention Centre (SICC) here on Saturday (Dec 6).
Also present were Sabah Chief Minister Datuk Seri Hajiji Noor; Deputy Chief Ministers Datuk Seri Dr Joachim Gunsalam, Datuk Seri Masidi Manjun and Datuk Ewon Benedick; and Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali.
Anwar said the matter was presented at the Cabinet meeting to ensure next year's rollout is more realistic, orderly and does not place undue pressure on small businesses still adapting to digital systems.
He also addressed complaints regarding delayed tax refunds, which he acknowledged had frustrated taxpayers who fulfil their obligations on time.
As an immediate corrective measure, the prime minister announced that the Federal Government would increase the allocation for tax refunds from RM2bil to RM4bil in December 2025 to expedite outstanding payments, particularly for small businesses. – Bernama
