It is also implementing a retention sum or a bank guarantee scheme as a safeguard.

Customs director-general T Subromaniam said the payment of the refunds will be carried out in stages from now till the end of the year.

He said most of the claims submitted to the department have moved past the review process.

The department is using several strategies to resolve the issue of GST refunds, Bernama quoted him as saying in a statement today.

For refunds below RM50,000, desk audits have been completed. Refunds will be made immediately.

The number of claims for sums under RM50,000 comprised more than 80% of the total claims, he said.

For claims of between RM50,000 and RM100,000, refunds will be made at the rate of 80%.

“The retained sum will be released after a site visit or sample audit. This is expected to be completed within a year,” he said.

For claims exceeding RM100,000, 70% of the total claim amount will be paid to the company.

The remaining 30% will be retained and paid after the site visit or field audit is completed within two months.

Lim had said earlier this month that the government will pay tax refund arrears amounting to RM37 billion — RM18 billion for income tax and RM19 billion for GST.

Last year, he accused the previous Barisan Nasional government of “robbing” the GST refunds, saying there was no money left in an account where the refunds meant for manufacturers were supposed to be deposited.