The Inland Revenue Board, also known as LHDN, has refunded RM9.35 billion in excess taxes to over three million taxpayers as of June 30, according to the Ministry of Finance .
In a parliamentary reply, MOF stated that 1.07 million taxpayers received their full refunds, totalling RM2.73 billion. This statement addressed a query from Stampin MP Chong Chieng Jen, who asked about the total outstanding tax refund amount, reasons for delays, and the timeline for disbursement.
MOF Prioritises Older Corporate Tax Refund Cases
MOF explained that it prioritises corporate tax refunds, which often involve larger amounts, based on the length of delay, it handles older cases first.
The ministry said this approach ensures all eligible taxpayers receive at least a partial refund within the year, while the government disburses the remainder either in the same year or the following year, depending on its financial position.
Low-Value Goods Tax Now in Effect
Regarding other tax matters, MOF clarified that the sales tax on low-value goods (LVG) took effect on January 1, 2024, and is not part of the current sales tax review. The LVG tax applies to all goods valued at less than RM500, which sellers import from abroad and sell online or through online marketplaces.
Locally Made Goods Exempt from LVG Tax
The ministry emphasised that the LVG tax does not apply to goods manufactured locally in Malaysia.
The clarification was in response to a question from Pagoh MP Tan Sri Muhyiddin Yassin concerning the government’s strategy to address the expanded sales and service tax’s impact on the cost of living and the operational burden on micro, small, and medium enterprises. MOF reiterated that the LVG tax only affects imported goods sold online via registered platforms, ensuring it does not impact locally produced goods.
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