PETALING JAYA: Ageing excess tax refund cases and those involving SMEs are among the priorities in the repayment process because “they have waited long enough”, says the Inland Revenue Board (LHDN).
LHDN chief executive officer Datuk Abu Tariq Jamaluddin (pic) said the board has moved to fast-track long-outstanding tax refunds after acknowledging calls for the money owed to be returned more quickly to ease financial pressures.
“We are now focusing on ageing cases and SMEs, as they have waited the longest. We are giving them priority,” he said in an interview.
Abu Tariq said the move follows the Prime Minister’s announcement of a RM4bil allocation to address delayed refunds, with LHDN now focusing on ageing cases and businesses most affected by cash-flow constraints.
“The Prime Minister has announced RM4bil, and a total of RM2bil has been processed and credited during the period from Dec 9 to Dec 18.
“The remaining RM2bil will be processed and settled before the end of December,” he said.
On Dec 7, Anwar, who is also Finance Minister, said the government has increased the tax refund allocation from RM2bil to RM4bil to expedite outstanding payments to taxpayers.
Abu Tariq said older refund cases are being settled through lump-sum payments rather than instalments, in line with calls for refunds to be returned more quickly and in full.
“For old cases, we try to settle them in one lump sum, based on the year of assessment,” he said.
Abu Tariq added that refunds are being disbursed progressively through monthly allocations, with the flexibility to increase allocations as needed, as part of efforts to respond to public and business feedback.
“This will be an ongoing process as we monitor feedback and progress. The RM4bil allocation is for December, and funds will be received monthly. When there is a need, we will add more,” he said.
He noted that individual taxpayers generally experience fewer delays, with most refunds being processed promptly, unless there are technical issues, such as outdated bank account details.
“Taxpayers are encouraged to check and update their information via the MyTax platform,” he said.
While it is challenging to provide a definitive timeline for clearing all outstanding refunds, Abu Tariq said LHDN would continue to monitor feedback as the additional funds are rolled out.
“We need to look at the feedback after the RM4bil allocation. What we can say is that this is an ongoing effort to ensure money is returned to those who need it, especially those who have been waiting for a long time,” he said.
