How much in excess tax refunds is reportedly being withheld?

Question

Accepted Answer

Tens of Billions of Ringgit in Excess Tax Refunds Reportedly Withheld

DAP adviser Lim Guan Eng has stated that the Inland Revenue Board (LHDN) is allegedly withholding tens of billions of ringgit in excess tax refunds. These outstanding amounts are based on published data and complaints received by DAP elected representatives nationwide, with individual cases involving sums ranging from RM100,000 withheld over five years to amounts exceeding RM100 million since 2020.
Estimated Scale of Withheld Refunds

The total sum of excess tax refunds allegedly held back by the LHDN is estimated to be in the "tens of billions of ringgit." This figure is derived from a combination of publicly available data and numerous complaints gathered by elected officials from the Democratic Action Party (DAP). These complaints highlight a significant issue affecting businesses across various scales, from smaller enterprises to larger corporations.
Basis for the Estimates

These estimates are not arbitrary but are grounded in real-world data. Lim Guan Eng, a former finance minister, indicated that the figures are informed by published statistics and the direct feedback from constituents received by DAP representatives. The complaints detail a wide spectrum of withholding periods and amounts, illustrating the pervasive nature of the problem affecting businesses since 2020.
Historical Context of Tax Refund Issues

This situation is not unprecedented, as Lim Guan Eng drew a parallel to the previous administration's handling of Goods and Services Tax (GST) refunds. He noted that over RM30 billion in GST refunds were withheld under the Barisan Nasional government before 2018, a situation that caused considerable financial strain for businesses. The Pakatan Harapan administration, beginning in 2019, initiated the process of repaying these long-standing refunds.
Proposed Solution for Liquidity

To address the current cash flow challenges faced by Malaysian businesses, Lim has proposed a substantial payout of RM20 billion in excess tax refunds. This proposed disbursement is specifically timed for January 2026, ahead of the Chinese New Year, with the aim of injecting much-needed liquidity into the economy. He suggested that such a move would not only alleviate the immediate cash squeeze but also generate significant goodwill towards the prime minister.

Reading history

Hide →

This history is cleared when the page is closed.

How much in excess tax refunds is reportedly being withheld?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends