KUALA LUMPUR, December 8 – The government has doubled its tax refund allocation from RM2 billion to RM4 billion to expedite delayed payments to taxpayers, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced in Putrajaya today.

The Inland Revenue Board (LHDN) will begin phased refund processing starting tomorrow, with Anwar stressing that the government must not owe money to the rakyat. He added that the Ministry of Finance is reviewing whether the RM4 billion allocation is sufficient and is prepared to increase it if needed.

The move follows complaints from small business owners about prolonged wait times for refunds. Anwar also reaffirmed his administration’s broader reform agenda, noting that institutional changes — including the Fiscal Responsibility Act and enhanced parliamentary roles for the opposition — are critical to restoring financial discipline and public trust.

Upcoming initiatives include the introduction of an Ombudsman and the Government Service Efficiency Commitment Act 2025 to enforce greater accountability among civil servants. The announcement was made during the closing of the three-day Rancakkan Madani Bersama Malaysiaku programme.

Which featured over 300 public service touchpoints and aimed to showcase the government’s ongoing achievements.