PUTRAJAYA: The government has increased the allocation for tax refunds from RM2bil to RM4bil to expedite outstanding payments to taxpayers, says Prime Minister Datuk Seri Anwar Ibrahim.
Anwar, who is also the Finance Minister, said this was necessary as the government should not owe money to the public and that the Inland Revenue Board of Malaysia (LHDN) would commence a phased processing of refunds to eligible taxpayers starting on Monday (Dec 8).
He added that the Finance Ministry is reviewing if the RM4bil allocation is sufficient and will increase the amount 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 at the closing of the Rancakkan Madani Bersama Malaysiaku programme here on Sunday (Dec 7).
Anwar also said that government debts to companies must be settled as quickly as possible, highlighting the need to change past practices where large companies could negotiate reductions, while smaller businesses were required to pay in full without negotiation.
On the national debt, Anwar said that it was a legacy from the previous administration and could not be resolved in the short term.
He reaffirmed that institutional reforms remain a priority for the government, including the implementation of the Fiscal Responsibility Act 2023 to strengthen public financial management and boost investor confidence.
Anwar also highlighted that parliamentary reforms are being expanded, including granting more space and authority to Opposition MPs to chair committees – an initiative that was previously never considered.
"Several reform initiatives will be rolled out next year including establishing an Ombudsman, which is currently being drafted by relevant ministries to enhance public sector accountability," he said.
In addition, the Government Service Efficiency Commitment Act 2025 will apply pressure on civil servants to be more accountable and improve their performance. – Bernama
