RM20b Tax Refund Programme Begins in 2026 — Here’s what Malaysian taxpayers need to know about entitlement and payment timelines

About two million Malaysians are still waiting to get their full tax refunds from LHDN. Lim Guan Eng keeps pushing for this issue to be resolved even though people criticize him on social media. He insists that the government needs to process RM20 billion in refunds before January 2026. His main point is that this money belongs to the taxpayers. He thinks the money should have been given back to them much sooner than what is currently planned.

RM20b Tax Refund Programme Begins in 2026
RM20b Tax Refund Programme Begins in 2026

How Malaysia’s LHDN Tax Refund System Will Work Under the 2026 RM20 Billion Programme

Key Aspect Updated Information
Pending Tax Refund Cases Nearly 2 million taxpayers have been waiting for complete refunds dating back to 2020.
Refunds Processed by June 2025 LHDN has returned RM9.35 billion to over three million eligible taxpayers.
Taxpayers Receiving Full Refunds Only about 1.07 million individuals received full repayments totaling RM2.73 billion.
Lim Guan Eng’s Suggested Action A proposal has been made to disburse RM20 billion in outstanding refunds starting January 2026.
Government Funding Committed The refund budget has increased from RM2 billion to RM4 billion, which remains insufficient according to Lim.
Main Concern Highlighted Excess taxes collected by LHDN have not yet been fully returned to taxpayers.

RM20b Tax Refund Programme Begins
RM20b Tax Refund Programme Begins

Clarifying Lim Guan Eng’s Statement on the Proposed RM20 Billion Tax Refund Release

Lim says the official parliamentary reply does not contradict his statement at all. It simply confirms the gap because millions of people received partial refunds instead of the full amount they were owed. What is his estimate? The unpaid refunds add up to tens of billions of ringgit. When critics mocked his numbers he responded by saying they were misreading the parliamentary reply and ignoring the real issue.

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Reasons Behind the Call to Accelerate the RM20 Billion Refund Disbursement

The timing matters here. When refunds clear by January 2026 people will have extra money before Chinese New Year arrives in February during the Year of the Horse. Getting refunds means better spending power & happier families along with improved business cash flow. Put simply it means giving people their own money back so they can manage their finances more easily.

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What the RM20 Billion Tax Refund Plan Means for Malaysia’s Fiscal and Economic Outlook

Teng Chang Khim criticized him twice on Facebook & questioned his figures. However Lim says these personal attacks will not stop him from continuing his work. For him the issue is clear and simple. Two million Malaysians are owed money and it should be returned to them.

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