PM Anwar announced an increase in the government’s allocation for tax refunds from RM2 billion to RM4 billion to ease cash flow problems faced by traders.
He said the decision was made following complaints from small businesses about delayed refunds.
“Now the government really needs RM2 billion to pay back quickly. I think for urgency, RM2 billion is not enough. We need to resolve this for small traders.
“So for this December, I made the decision yesterday. I conveyed to the Cabinet that we will pay back to traders who are facing problems and I am increasing from RM2 billion to RM4 billion to settle this,” he said.
He also said the e-invoicing threshold has been raised from RM500,000 to RM1 million following complaints from small businesses about the additional burden and costs.
“So this means small companies no longer need to be forced into e-invoicing. How things will be after RM1 million, that will be studied regarding the cost implications,” Anwar said.
Effective Jan. 1, only taxpayers with annual sales between RM1 million and RM5 million will be required to implement e-invoicing. Taxpayers with annual sales below RM1 million will be exempted.
