Early tax refunds ease Hari Raya financial pressures for Malaysian households

LocalPersonal Finance
26 Mar 2026 • 10:36 AM MYT
The Vibes
The Vibes

Featuring breaking news & latest stories from every side.

image is not available

MANY Malaysians are finding that early income tax refunds this year have provided timely financial relief, allowing them to better manage the additional expenses associated with Hari Raya Aidilfitri.

With festive spending coinciding with broader cost-of-living pressures, taxpayers say receiving refunds ahead of the celebrations has helped ease cash flow constraints and reduce financial strain.

Corporate communications officer Muhammad Faiz Aziz, 33, told The Star the early refund significantly reduced the burden of travelling during the festive period, particularly as he prepares to return to his hometown in Terengganu with his wife for the first time.

“This is my first year bringing my wife back to my hometown in Terengganu for the Hari Raya celebrations.

“Flight tickets can be costly. The tax refund definitely eased that burden,” he said.

Although Faiz noted that delays would not necessarily disrupt his plans, he emphasised the advantages of filing early, which has consistently enabled him to receive refunds sooner.

“I usually submit my returns on the first day it opens, and I have managed to receive my refunds early most of the time.

“But getting an early refund this year has definitely helped cover a lot of Hari Raya expenses.

“With a big family, the extra cash has definitely made things more manageable,” he added.

For journalist Iylia Marsya Iskandar, 27, the refund arrives at a particularly critical time as she balances festive spending with preparations for her upcoming wedding.

“I usually set aside some funds for Hari Raya, but this year is especially important as I’m planning a wedding after the festive season,” she said.

She added that the refunded amount has provided a welcome financial buffer.

“At this stage, any extra amount helps. The refund also allows me to give Raya money to my cousins, nieces and nephews without worrying too much,” she said.

Similarly, Ain Radhi, 39, said the timing of her refund has allowed her to manage annual expenses such as road tax and car insurance more effectively. Having filed her taxes on March 1, she found the early disbursement particularly helpful in balancing her monthly finances.

“The refund really helped ease my financial planning this month. The timely return made a big difference in managing my cash flow,” she said.

Younger taxpayers are also feeling the benefit. Digital producer Daniel Ahmad, 25, described the refund as providing valuable breathing space during what is typically an expensive period.

“With the rising cost of living, every bit helps cover essentials like groceries and festive food and reduces the need to dip into savings or rely on credit,” he said.

Daniel added that while he does not depend entirely on the refund, any delay would still have an impact on his spending decisions.

“I might have to scale back or focus on essentials. Having it on time makes things less stressful,” he said. - March 26, 2026