Malaysia

Civil service called on to drive delivery as govt allocates RM4 billion to clear tax refund backlog

Anwar calls on civil servants to ensure government initiatives reach their intended beneficiaries, even amid criticism

Updated 10 months ago · Published on 07 Dec 2025 2:10PM

Civil service called on to drive delivery as govt allocates RM4 billion to clear tax refund backlog
PM announces an expanded RM4 billion allocation to expedite long-delayed tax refunds - December 7, 2025

PRIME MINISTER Datuk Seri Anwar Ibrahim has reminded the civil service that it bears the responsibility of implementing government policies and initiatives so the intended groups can fully benefit, despite criticism or differences of opinion.

Speaking at the Rancakkan MADANI Bersama Malaysiaku programme at Dataran Putrajaya today, Anwar said the government currently has 167 new initiatives for the people, although many do not reach the public as intended.

This gap, he said, often results in misunderstanding and frustration.

“I discussed this earlier with Datuk Seri Dr Ahmad Zahid Hamidi and Datuk Seri Fadillah Yusof, and I heard in the forum just now that Datuk Zahid mentioned there were 140 efforts for new initiatives. In fact, if we count them, there are 167, but they sometimes do not reach the public,” he said.

“What reaches the public instead are rubbish, curses and insults, because in a free and democratic country, with social media, it is used not to build but to demean,” he added.

Attending the event were Deputy Prime Ministers Datuk Seri Dr Ahmad Zahid Hamidi and Datuk Seri Fadillah Yusof, Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar and Public Service Director-General Tan Sri Wan Ahmad Dahlan Abd Aziz.

Meanwhile, Anwar announced that the government will add a further RM2 billion to settle outstanding tax refund arrears, doubling the total allocation to RM4 billion. He said the move is intended to ensure taxpayers are not burdened by delayed repayments.

He noted that late refunds exert pressure on taxpayers, especially small business owners who often make advance payments for fear of being penalised. “The principle is that the government must not owe the people,” Anwar stressed.

“Therefore, I think it is reasonable. The government does not want the people to be in debt, and the government itself, in principle, must not owe the people.

“That is why yesterday I announced an allocation of RM2 billion for refunds or excess collections. But starting this month – starting now – we are adding another RM2 billion, making it RM4 billion to be distributed immediately,” he said.

The Prime Minister described the backlog as a longstanding legacy issue involving substantial sums that must be resolved in stages.

However, he reaffirmed the government’s commitment to expedite the matter as it concerns compassion, morality and justice for the public.

Anwar also highlighted issues of leakages and the anxiety among small traders when they are pressed for quick payments while government refunds are simultaneously delayed.

He said a more digital and efficient system has already reduced leakages, but further improvements are needed to ensure the public does not face additional burdens.

In addition, Anwar had announced adjustments to the e-invoicing policy after receiving feedback from small businesses who felt its implementation was overly burdensome.

While acknowledging its importance to national digital transformation, he said the government recognises that some businesses require more space to adapt. - December 7, 2025

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