E-invoice Exemption Threshold raised To RM1 Mln - Anwar

KOTA KINABALU, Dec 6 (Bernama) -- The government will raise the e-invoice exemption threshold from RM500,000 to RM1 million beginning next year as part of efforts to ease the burden on small and medium enterprises (SMEs).

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.

“So we reviewed it quickly. After carrying out the assessment, the Cabinet made a preliminary decision yesterday. 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 today.

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 yesterday 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 RM2 billion to RM4 billion this December to expedite outstanding payments, particularly for small businesses.

Anwar also reiterated the Federal Government’s commitment to implementing Sabah’s 40 per cent revenue claim as provided under the Malaysia Agreement 1963 (MA63).

“This is the strength of the MADANI Government. Normally after an election, we take a breather. But not this time, because I don’t want anyone assuming that politics is merely about making promises without delivering,” he said.

Anwar said the Technical Committee, chaired by Treasury secretary-general Datuk Johan Mahmood Merican has already held preliminary meetings with Sabah state secretary Datuk Seri Safar Untong to outline implementation parameters.

However, the full committee meeting is expected to take place before mid-January once several Cabinet vacancies are resolved.

“We will set clear parameters — the amount, payment phases within a year and so on. All this will be finalised at the technical committee level, followed by the Federal and State committees, before being submitted to both the Sabah Cabinet and the Federal Cabinet,” he said.

He stressed that having clear parameters is crucial to ensure payments are made in an orderly manner and are legally sound.

Anwar added that certain aspects may require legal amendments, as seen previously during the transfer of electrical regulatory powers to Sabah.

He also stressed that discussions on Sabah’s 40 per cent revenue claim should not be viewed as political rhetoric, as the government is committed to implementing it transparently and responsibly.

-- BERNAMA