{
  "id": 15832611,
  "title": "Guan Eng warns of SME liquidity crisis over RM30b delayed tax refunds",
  "url": "https://urgent.news/2026/10/21/guan-eng-warns-of-sme-liquidity-crisis-over-rm30b-delayed-tax-refunds",
  "topic": "world",
  "section": "World",
  "published": "2026-10-21T01:52:09.000Z",
  "source": {
    "name": "Malay Mail",
    "slug": "malay-mail",
    "url": "https://www.malaymail.com/news/malaysia/2026/10/21/guan-eng-warns-of-sme-liquidity-crisis-over-rm30b-delayed-tax-refunds/239960"
  },
  "original_language": "en",
  "account": "Former finance minister Lim Guan Eng has cautioned the Malaysian government to accelerate the repayment of RM29.919 billion in delayed tax refunds, asserting that the burden on corporate liquidity, especially SMEs, is significant. The 2025 Federal Government Financial Statements reveal that outstanding tax refund liabilities decreased by RM3.425 billion from RM33.342 billion in 2024 to RM29.919 billion in 2025. While lauding the Inland Revenue Board (IRB) for reducing the owed amount to firms that overpaid taxes, Lim emphasized that the remaining sum is still enormous, particularly considering it belongs to the private sector. He highlighted that in 2026, RM9 billion was paid to 130,000 companies by September 30. Lim recommended setting a strict RM10 billion cap on federal tax refund arrears to prevent systemic delays. He argued that a backlog near RM30 billion inflicts undue financial hardship on cash-strapped businesses facing deteriorating operating conditions and a volatile global economic climate. Lim pointed out that outstanding tax refund commitments had steadily increased over recent years, from RM21.836 billion in 2021 to RM25.511 billion in 2023. He also criticized public officials for not persistently advocating for the immediate release of these funds, suggesting they appear \"sleeping on the job.\" Furthermore, Lim noted that statutory late-payment penalties have surged sharply due to refund delays. Under Section 111D of the Income Tax Act, the government pays a 2% compensation to taxpayers when the IRB fails to disburse excess tax refunds within timeframes. In 2025, the IRB disbursed RM23.64 million under this mechanism, which nearly quintupled in the first nine months of 2026 to RM109 million as of September 30.",
  "summary": "KUALA LUMPUR, Oct 21 — Former finance minister Lim Guan Eng has urged the federal government to expedite the repay...",
  "key_points": [],
  "editors_take": "Persistent delays in disbursing billions in tax refunds threaten the survival of cash-strapped small businesses and force the government to pay increasing amounts in statutory late-payment penalties.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}