PUTRAJAYA, Dec 7 — The government has increased the tax refund allocation from RM2 billion to RM4 billion to expedite outstanding payments to taxpayers, said Prime Minister Datuk Seri Anwar Ibrahim.
Anwar, who is also the Finance Minister, said this move is necessary because the government should not owe money to the public. As such, the Inland Revenue Board of Malaysia (LHDN) will commence the phased processing of refunds to eligible taxpayers starting tomorrow.
The Finance Ministry is also reviewing whether the RM4 billion allocation is sufficient and, if necessary, will increase it.
"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 during the closing ceremony for the Rancakkan Madani Bersama Malaysiaku programme today.
Anwar emphasised that this is a matter of conscience, compassion and respect, and that those who owe the country should pay promptly and without delay.
He said the government's debt to companies must be settled as quickly as possible, citing the need to change past practices where large companies could negotiate reductions, while smaller businesses were required to pay in full without negotiation.
The increase in the allocation follows complaints from small business owners about delays in tax refunds.
Regarding the national debt, the Prime Minister said that it is a legacy from the previous administration and cannot be resolved in the short term.
At the same time, he reaffirmed that institutional reforms remain a priority for the government, including implementing the Public Finance and Fiscal Responsibility Act 2023 to strengthen public financial management and boost investor confidence.
He added that Parliamentary reforms are being expanded, including granting Opposition MPs more space and authority to chair committees, an initiative that was previously unconsidered or unimplemented.
“Several reform initiatives will be rolled out next year, including the establishment of an Ombudsman, which is currently being drafted by the relevant ministries, to enhance public sector accountability,” Anwar said.
The Government Service Efficiency Commitment Act 2025 will also apply pressure on civil servants to be more accountable and improve their performance.
The three-day Rancakkan Madani programme, which began on Friday (December 5), offers over 300 touchpoint services, a career carnival, interactive exhibitions, family entertainment and special promotions for visitors.
It is a continuation of the One Year with the Madani Government and the Two Years of Madani Government programmes, which serve as the administration’s annual platform for reporting its achievements directly to the people.
