Lim Guan Eng Warns: RM30 Billion GST Refund 'Nightmare' Must Not Be Repeated
In a recent statement, Lim Guan Eng, the DAP MP for Bagan, has urged Deputy Prime Minister and BN chairman Datuk Seri Ahmad Zahid Hamidi to ensure that the financial crisis caused by unpaid GST refunds, totaling over RM30 billion between 2015 and 2018, is not repeated if the goods and services tax (GST) is reintroduced. Lim highlights the BN government's failure to issue GST refunds as legally required, resulting in a massive backlog of RM30 billion over just three years.
"Before pushing for GST, Ahmad Zahid must first guarantee that the nightmare of GST refunds not paid, amounting to RM30 billion during its initial implementation from 2015 to 2018, will never recur," Lim said. He emphasizes that GST, as a consumption tax, is designed to be fair and efficient, requiring refunds of input taxes to avoid double taxation.
The issue resurfaced in 2020 under the Inland Revenue Board (LHDN), with businesses owed tens of billions of ringgit in excess taxes paid but not refunded since then. Lim calls this a recurring nightmare for businesses, urging the current government to start returning some of these funds. He suggests a RM20 billion refund to help businesses enjoy a prosperous Chinese New Year in 2026.
Lim also questions Ahmad Zahid's plan to reinstate GST, stressing that any return of the tax must include safeguards to prevent a repeat of the RM30 billion unpaid refunds crisis under BN from 2015 to 2018. Ahmad Zahid previously stated that BN would allow the existing Sales and Service Tax (SST) to continue for now, but intended to reintroduce GST post-16th General Election. Lim asks whether a solution is in place to avoid a recurrence of the massive financial setback experienced by businesses under the previous GST system.
