Deputy finance minister Liew Chin Tong said a total of RM23.6 million in compensation payments were made last year, Bernama reported.

“The government always complies and will pay compensation of 2% per year for any late tax refunds as stipulated under Section 111D of the Income Tax Act 1967,” he said during a special chamber session at the Dewan Rakyat today.

He was replying to Wee Ka Siong (BN-Ayer Hitam), who asked about the government’s target to fully settle the remaining excess tax refunds of small and medium-sized enterprises in 2026, as well as the mechanism to prevent the accumulation of new arrears in the future.

Liew said as a trustworthy government, the commitment to pay compensation will be honoured and is non-negotiable.

On Dec 19, it was reported that the Inland Revenue Board processed RM17 billion in tax refunds covering 3.53 million cases, with the remaining RM2 billion to be processed and disbursed before the end of the month.