KUALA LUMPUR: The Government is aiming to complete tax refund payments for the Year of Assessment 2023 ahead of schedule, with full settlement now expected by February 2026, earlier than its original first-quarter target, says Datuk Seri Amir Hamzah Azizan (pic).
The Finance Minister II said the government inherited a substantial amount of outstanding tax refund arrears, but it will continue to discharge its responsibility in managing tax refund cases in an orderly and effective manner.
"While the Government has committed to resolving Year of Assessment 2023 cases in the first quarter of 2026, we are confident that these will be completed earlier, by February 2026," he told Jimmy Puah Wee Tse (PH-Tebrau) during the Minister's Question Time on Thursday (Feb 12).
Puah had asked the Finance Ministry to state the total amount of excess tax refunds that have been paid to date, the outstanding balance yet to be settled, and the government’s timeline for fully resolving all remaining excess tax refund payments.
As of Feb 10, 2026, a total of RM5.4bil in refunds involving 38,629 cases has already been disbursed, said Amir Hamzah.
"Refunds for excess tax for Year of Assessment 2024 are targeted to be completed before the end of this year.
"At the same time, refunds, regardless of the age of the case, will continue to be made to all taxpayers other than companies, particularly individual taxpayers," he said.
The total tax refunds disbursed in 2025 recorded the highest amount in five years, at RM22.45bil, he said.
"Comparing the last three-year period (2023–2025), the government disbursed RM56bil in tax refunds, which is 50% higher than the RM37bil disbursed during 2020–2022.
"Of this amount, RM7.5bil was refunded in December 2025 alone, exceeding the initial commitment of RM4bil announced by the Prime Minister Datuk Seri Anwar Ibrahim on 6 December 2025," said Amir Hamzah.
All refundable excess tax cases for the Year of Assessment 2022 and prior years were fully resolved in 2025, added the Finance Minister II.
To ensure that refunds are disbursed within the appropriate timeframe, he assured that various measures have been implemented.
"These include prioritisation based on the age of arrears, applying the “first-in, first-out” principle, full settlement of outstanding excess tax for individual taxpayers, and prioritising MSMEs or companies facing cash flow constraints. "The government remains committed to ensuring that excess tax refunds are implemented fully in a fair, transparent and equitable manner, taking into account the interests of all taxpayers," he said.
These measures, he added, reflect the government’s continuous efforts to strengthen tax administration efficiency and safeguard taxpayers’ rights, in line with the government’s fiscal reform agenda.
