Govt Targets February 2026 To Complete 2023 Tax Refunds

Samuel Chua

13th February 2026 - 2 min read

The government now expects to complete all outstanding tax refund payments for the Year of Assessment 2023 by February 2026, ahead of its earlier first quarter target.

Finance Minister II Datuk Seri Amir Hamzah Azizan said the administration inherited a substantial backlog of tax refund arrears, but remains committed to resolving cases in an orderly and effective manner.

While the initial commitment was to settle Year of Assessment 2023 refunds within the first quarter of 2026, he said the Government is confident the process will be completed earlier, by February 2026. He was responding to Jimmy Puah Wee Tse, Member of Parliament for Tebrau, during Minister’s Question Time on 12 February 2026.

RM5.4 Billion In Refunds Already Disbursed

As of 10 February 2026, RM5.4 billion in excess tax refunds involving 38,629 cases has been paid out.

Refunds for the Year of Assessment 2024 are targeted to be completed before the end of 2026. At the same time, refunds will continue to be processed for cases of all ages, particularly for individual taxpayers.

Amir Hamzah also said that all refundable excess tax cases for the Year of Assessment 2022 and earlier years were fully resolved in 2025.

2025 Records Highest Tax Refunds In Five Years

Total tax refunds disbursed in 2025 reached RM22.45 billion, the highest annual amount in the past five years.

Over the three year period from 2023 to 2025, the Government paid out RM56 billion in tax refunds. This is 50% higher than the RM37 billion disbursed between 2020 and 2022.

In December 2025 alone, RM7.5 billion was refunded, exceeding the initial RM4 billion commitment announced by Prime Minister Datuk Seri Anwar Ibrahim on 6 December 2025.

Measures To Clear Backlog And Speed Up Payments

To ensure refunds are processed within a reasonable timeframe, the Government has implemented several administrative measures.

These include prioritising older arrears, applying a first in, first out approach, fully settling outstanding excess tax for individual taxpayers, and prioritising micro, small, and medium enterprises facing cash flow constraints.

According to Amir Hamzah, these steps form part of ongoing efforts to strengthen tax administration efficiency and ensure that excess tax refunds are carried out in a fair and transparent manner.

Samuel Chua

Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.

0 0 votes

Article Rating