KUALA LUMPUR, Aug 20 (Bernama) — The Inland Revenue Board (LHDN) has issued tax refunds totalling RM9.35 billion to more than three million taxpayers as of June 30, 2025, according to the Ministry of Finance (MOF).
In a written parliamentary reply on Tuesday, the ministry stated that out of the total taxpayers involved, 1.07 million have received their full refunds, amounting to RM2.73 billion.
The reply was in response to a query from Chong Chieng Jen (PH–Stampin) regarding the total outstanding tax refund amount, reasons for delays, and the timeline for disbursement.
The MOF added that corporate tax refunds, which typically involve larger amounts, are prioritised based on the length of delay, with older cases being handled first.
“This is to ensure that all eligible taxpayers receive at least a partial refund within the year, while the remainder will be disbursed either in the same year or the following year, depending on the government’s financial position,” said the ministry.
Meanwhile, the MOF said the sales tax on low-value goods (LVG) has been implemented since Jan 1, 2024, and is not part of the current sales tax review.
The LVG tax applies to all goods imported from abroad valued at less than RM500 and sold online or through online marketplaces by registered sellers.
“The LVG tax does not apply to goods that are locally manufactured,” the ministry clarified in response to a question from Tan Sri Muhyiddin Yassin (PN–Pagoh) regarding the government’s strategy to address the impact of the expanded SST on cost of living and operational burden for micro, small, and medium enterprises (MSMEs).
The MOF emphasised that the LVG tax only applies to imported goods sold online under registered platforms, and locally produced goods are not affected.
— BERNAMA
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