RM20b Tax Refund : What It Means for Malaysians in 2026

KEY HIGHLIGHTS

  • Lim Guan Eng pushes govt to release RM20b in pending tax refunds.
  • Around two million Malaysians still haven’t received full refunds since 2020.
  • He says clearing refunds would boost public spending ahead of Feb 2026.

Here’s the thing a massive two million Malaysians are still waiting for their full tax refunds from LHDN, and Lim Guan Eng isn’t letting the issue go.

Even with people throwing shade at him online, he’s sticking to his demand: clear RM20 billion in refunds by January 2026.

According to him, the money belongs to taxpayers and should have reached them years ago.

Malaysia LHDN refunds

TopicDetails
Total taxpayers due refunds (since 2020)≈ 2 million still pending full refunds
Refunds issued till June 2025RM9.35 billion refunded to 3+ million taxpayers
Full refunds issuedOnly 1.07 million got full refunds worth RM2.73 billion
Lim Guan Eng’s proposalRelease RM20 billion refunds in Jan 2026
Govt allocation so farRaised from RM2b to RM4b, still short per Lim
Core issue“Excess taxes still not fully refunded by LHDN”

What Lim Guan Eng Is Actually Claiming

Lim says the official parliamentary reply doesn’t contradict him at all.
It simply confirms the gap — millions got partial refunds, not the full amount due.

His estimate?
The unpaid refunds run into tens of billions of ringgit.

So when critics mocked his numbers, he hit back saying they were misreading the parliamentary reply and ignoring the real issue.

Why He Wants the RM20 Billion Released Now

There’s a timing angle here.
January 2026 refund clearance means people go into Chinese New Year (Feb, Year of the Horse) with more cash in hand.

More refund money =
Better spending + Happier families + Stronger business cash flow.

In simple words: “Refund their own money, let them breathe a little.”

His Response to Online Attacks

Teng Chang Khim went after him twice on Facebook, calling out his numbers.
But Lim says these personal attacks won’t slow him down.

For him, the fight is straightforward:
“Two million Malaysians are owed money. Give it back.”

The Larger Picture

The Ministry of Finance hasn’t denied the possibility of a large outstanding refund amount.
They’ve simply stated what has been refunded so far — not what is still owed.

That’s why Lim insists the govt should step up the allocation to RM20 billion, calling the current RM4 billion “not enough”.

Lim’s Final Message

He’s asking Malaysians to support taxpayers who’ve been waiting years for their money.
And he says he won’t back down, no matter how many personal attacks come his way.

Frequently Asked Questions

1. Are Malaysians really owed RM20 billion in refunds?

Lim believes the outstanding amount could be in the tens of billions, but the official exact figure hasn’t been disclosed.

2. Why are so many refunds still pending since 2020?

Most cases involve partial refunds or processing delays within LHDN, according to the parliamentary reply.

3. When could refunds actually be issued?

If the govt accepts Lim’s proposal, he says January 2026 should be the month to release the bulk refunds.

About Hum mali

Active in article writing since 2021 and connected with Google Blog from the same year. I specialise in Finance, Auto Tech, and Education niches, with a strong grip on creating clear, practical, reader-focused content. My work blends solid research with SEO sense to deliver real value, not just words.

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