Kuala lumpur: The government has successfully completed excess tax refunds totaling RM22.45 billion in 2025, marking the highest amount recorded in the past five years, as announced by Finance Minister II Datuk Seri Amir Hamzah Azizan. This achievement highlights the government's commitment to addressing overdue tax refunds efficiently.
According to BERNAMA News Agency, the RM22.45 billion refund is part of a larger sum of RM56 billion in tax refunds processed by the government over the last three years. This amount represents a significant 50 percent increase compared to the RM37 billion refunded during the 2020 to 2022 period. Notably, a portion of the refund, amounting to RM7.5 billion, was disbursed in December 2025, exceeding the initial RM4 billion commitment made by Prime Minister Datuk Seri Anwar Ibrahim on December 6, 2025.
All tax cases for the 2022 and prior assessment years were concluded in 2025, involving a total of 3.7 million cases, compared to 2.7 million cases resolved in 2024. Amir Hamzah shared this information while winding up the debate on the motion of thanks for the Royal Address in the Dewan Rakyat.
The government anticipates completing the tax refund for the 2023 assessment year ahead of schedule, aiming for February 2026. Additionally, all refunds for the 2024 assessment year are expected to be finalized before the end of the current year. Amir Hamzah emphasized that the government adheres to the Income Tax Act 1967, ensuring a compensation of two percent per year for any delayed refunds. In 2025 alone, compensation payments amounting to RM23.6 million were made.
The Finance Minister reaffirmed the government's commitment to fulfilling compensation obligations, emphasizing that this promise will not be compromised. Furthermore, all outstanding claims for goods and services tax (GST) refunds have been addressed. Following the abolition of GST in 2018, the total outstanding refund claims stood at RM19 billion. While most claims have been reimbursed, approximately RM30 million remains unsettled due to ongoing court cases or incomplete refund details, such as missing company bank account information.