Malaysia

Minister reports record tax refunds and expands MyKad-based subsidy programme

The MADANI administration has issued RM22.45 billion in tax refunds in 2025, Amir Hamzah Azizan tells Parliament

Updated 8 months ago · Published on 12 Feb 2026 11:16AM

Minister reports record tax refunds and expands MyKad-based subsidy programme
MyKad-based subsidy mechanisms to include essential goods such as cooking oil, following the success of the BUDI95 petrol initiative being explored - February 12, 2026

THE government has reported record payouts for overpaid taxes and confirmed plans to broaden citizen-targeted subsidies using the national identity card, MyKad, as a verification tool, Finance Minister II Datuk Seri Amir Hamzah Azizan told Parliament on Thursday.

Responding to a parliamentary question from Tebrau MP Jimmy Puah Wee Tse on the status of tax refunds, Amir noted that the MADANI administration had inherited a significant backlog but had made substantial progress in honouring taxpayers’ claims.

“Refunds completed in 2025 reached RM22.45 billion, the highest in five years.

“Comparing the period 2023–2025, the government issued RM56 billion, 50 per cent more than the RM37 billion returned between 2020 and 2022,” the minister said.

“Some RM7.5 billion of these refunds were paid in December 2025, exceeding the initial RM4 billion commitment announced by the Prime Minister on 6 December 2025.”

As of 10 February 2026, refunds for the 2023 assessment year have already begun, with RM5.4 billion disbursed across 38,629 cases, and the ministry expects to complete the process ahead of the planned first-quarter deadline.

Refunds for the 2024 assessment year are targeted for completion by the end of 2026.

The government affirmed that repayments will continue to individual taxpayers and businesses, prioritising older claims and those facing cash-flow difficulties.

Amir highlighted that the administration employs a first-in-first-out approach to ensure fairness and timeliness, while also maintaining oversight to protect taxpayer rights in line with the MADANI government’s fiscal reform agenda.

The minister also addressed queries regarding the BUDI95 petrol subsidy scheme, launched in October 2025, which leverages MyKad verification to deliver subsidised RON95 petrol directly at fuel pumps without the need for additional registration.

“As of 11 February 2026, over 14.6 million Malaysians have benefited from the scheme, which averages 3.1 million transactions per day without disruption,” he said.

The programme has demonstrated high public acceptance, stability, and ease of use.

Looking ahead, the government is considering extending the MyKad-based system to other essential goods, including cooking oil, under the forthcoming Skim Penstabilan Harga Minyak Masak (COSS).

Integration with the existing Sumbangan Asas Rahmah (SARA) 2025 platform is being studied to strengthen identity verification and prevent subsidy leakage.

“This approach utilises existing infrastructure without additional burden on the public and ensures that only eligible citizens benefit,” Amir said, adding that enforcement measures will continue to safeguard fairness, efficiency, and transparency in subsidy distribution. - February 12, 2026

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