KUALA LUMPUR, The Inland Revenue Board (LHDN) has refunded a total of RM9.35 billion in excess taxes 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 said that of the total taxpayers involved, 1.07 million have received full refunds amounting to RM2.73 billion.
The statement was in response to Chong Chieng Jen (PH-Stampin), who had asked about the total outstanding refund amount, reasons for delays, and the timeline for repayment.
The MOF explained that corporate tax refunds, which usually involve larger sums, are prioritised based on the length of delay, with older cases handled first.
“This ensures 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,” the ministry said.
On another matter, the MOF clarified that the sales tax on low-value goods (LVG) has been in effect since Jan 1, 2024, and is not part of the current sales tax review.
The LVG tax applies to imported goods worth below RM500 that are sold online or through registered marketplaces, while locally manufactured goods are exempt.
The ministry was responding to Tan Sri Muhyiddin Yassin (PN-Pagoh), who had asked about the government’s strategy to ease the cost of living and reduce operational burdens for micro, small, and medium enterprises (MSMEs).
The MOF stressed that the LVG tax only affects imported items purchased online, ensuring no additional burden is placed on local products or businesses.
