Govt Completes RM22.45 Bln Tax Refund In 2025, Highest In Five Years -- Amir Hamzah
KUALA LUMPUR, Feb 4 (Bernama) -- The government has completed excess tax refunds totalling RM22.45 billion in 2025, the highest in five years, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
He said the amount was part of the RM56 billion in tax refunds completed by the government over the last three years, an increase of 50 per cent compared to RM37 billion for the period 2020 to 2022.
“A portion of the refund amounting to RM7.5 billion was made in December 2025, compared to the initial commitment of RM4 billion announced by Prime Minister Datuk Seri Anwar Ibrahim on Dec 6, 2025.
“All cases for the 2022 and prior assessment years were completed in 2025. The completion of these tax refunds involved 3.7 million cases in 2025 compared to 2.7 million cases in 2024,” he said.
Amir Hamzah said this during the winding up of the debate on the motion of thanks for the Royal Address in the Dewan Rakyat today.
He said the government expects the tax refund for the 2023 assessment year to be completed earlier than the target, namely by February 2026, while the 2024 assessment year will be fully completed before the end of this year.
He said the government complies with and will pay compensation of two per cent per year for any late refunds, as stipulated in the Income Tax Act 1967.
“To date, compensation payments totalling RM23.6 million have been made as part of the refund in 2025.
“As a trustworthy government, the commitment to pay compensation will be fulfilled, and this matter will not be compromised,” he said.
Meanwhile, Amir Hamzah said the government has settled all outstanding claims for goods and services tax (GST) refunds.
“When GST was abolished in 2018, the total outstanding refund claims reached RM19 billion.
“All claims have been reimbursed, except for around RM30 million, which has not been settled for certain reasons, including claims still being heard in court or incomplete refund details such as the company’s bank account,” he said.
-- BERNAMA