The Malaysian government has disbursed RM11.8 million in compensation for late tax refunds, fulfilling its legal obligation to taxpayers.
KUALA LUMPUR: The government has disbursed RM11.8 million in compensation payments for delays in excess tax refunds for this year up to February 11.
Deputy Finance Minister Liew Chin Tong (pic) stated that a total of RM23.6 million in compensation payments have been made for the year 2025.
He confirmed the government’s compliance with the law during a Special Chamber session at the Dewan Rakyat.
“The government always complies and will pay compensation of 2% per year for any late tax refunds as stipulated under Section 111D of the Income Tax Act 1967,” he said.
Liew was responding to a question from Datuk Seri Wee Ka Siong regarding the settlement target for SME refunds and future prevention mechanisms.
He emphasised the government’s unwavering commitment to this financial obligation.
“As a trustworthy government, the commitment to pay compensation will be honoured and is non-negotiable,” Liew said.
