AIR Putih assemblyman Lim Guan Eng has urged the Federal Government to immediately refund overpaid taxes, warning that the long delay is hurting businesses and workers.
Lim said the problem of unpaid tax refunds began during the implementation of the Goods and Services Tax (GST), when the government retained funds that should have been returned to taxpayers.
He stated that between 2015 and 2018, GST refunds were not paid until a change of government occurred.
“Only after we formed the government did we start refunding in GST overpayments,” he said.
Although GST has since been abolished, Lim said the same issue has persisted under income tax, with businesses required to pay estimated taxes within the same year, even though their actual profits can only be confirmed later.
“To avoid penalties, many businesses overestimate their income and end up paying more tax than they should.
“By policy, this extra tax should be refunded within a few days, but that has not happened,” he said in a media conference at his service centre today.
He said from 2020 until 2024, confirmed tax overpayments were not refunded, despite the government being aware that the money was owed to taxpayers.
“These are not small sums,” Lim said.
He called on the government to refund at least before next year’s festive season, saying this would help businesses manage cash flow and pay workers.
Lim warned that continued delays in tax refunds would further erode public trust in government institutions.
“To restore confidence, the government must protect taxpayers’ money and ensure refunds are paid promptly,” he said.
Meanwhile, Lim distributed a total of RM10,600 to several organisations, including temple committees and a school parents and teachers’ association.
The organisations were Pertubuhan Perayaan Teong Guan Kampong Baru dan Taman Lumba Kuda, Pertubuhan Penganut Dewa Phor Thor Taman Air Itam, Pertubuhan Penganut Dewa Tua Peh Kong Guar Kelawar and SJK (T) Rajaji PTA.
The aid covered the supply of tables and chairs as well as a cash contribution to support educational needs.