The government has increased the tax refund allocation from RM2 billion to RM4 billion to expedite the settlement of arrears to taxpayers, according to Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim.
He stressed that the government should not owe the people, hence the IRB will begin the refund process in stages to eligible individuals and companies starting Monday, December 8.
Anwar also informed that the Finance Ministry is assessing whether the RM4 billion allocation is sufficient, and the government is ready to increase funds if needed.
According to him, Finance Minister II, Datuk Seri Amir Hamzah Azizan together with Treasury Secretary-General, Datuk Johan Mahmood Merican, as well as the IRB management are examining the actual amount that needs to be adjusted to ensure that all payments can be settled on time.
He stressed that tax refunds are a matter of trust and accountability, while reminding that those who owe the government also need to settle their payments without delay.
At the same time, Anwar wants the government's debt to companies to be settled immediately, while criticizing the old practice where large companies are given room to negotiate debt reduction while small businesses are forced to pay in full without any choice.
This increase in allocation was made after the government received many complaints from small entrepreneurs about delays in tax refunds, which affected their cash flow.
At the same time, Anwar explained that the national debt is a legacy of the previous administration and cannot be settled in a short period of time.
