E-invoice exemption threshold raised to RM1m - Anwar

The government will raise the e-invoice exemption threshold from RM500,000 to RM1 million beginning next year as part of efforts to ease the burden on small and medium enterprises (SMEs).

Prime Minister Anwar Ibrahim said the decision was made after the government received direct feedback from small business owners over the cost of implementing the system.

“So we reviewed it quickly. After carrying out the assessment, the cabinet made a preliminary decision yesterday. These small and medium businesses felt this would add pressure and costs. I heard them… so small companies will no longer be compelled to implement e-invoicing,” he said.

He said this during the “Sentuhan Madani Bersama Rakyat Sabah” programme at the Sabah International Convention Centre (SICC) in Kota Kinabalu today.

Also present were Sabah Chief Minister Hajiji Noor; Deputy Chief Ministers Dr Joachim Gunsalam, Masidi Manjun and Ewon Benedick; and Domestic Trade and Cost of Living Minister Armizan Ali.

Anwar said the matter was presented at the cabinet meeting yesterday to ensure next year’s rollout is more realistic, orderly and does not place undue pressure on small businesses still adapting to digital systems.

He also addressed complaints regarding delayed tax refunds, which he acknowledged had frustrated taxpayers who fulfilled their obligations on time.

As an immediate corrective measure, the prime minister announced that the federal government would increase the allocation for tax refunds from RM2 billion to RM4 billion this December to expedite outstanding payments, particularly for small businesses.

Govt committed to Sabah’s 40pct revenue

Anwar also reiterated the federal government’s commitment to implementing Sabah’s 40 percent revenue claim as provided under the Malaysia Agreement 1963 (MA63).

“This is the strength of the Madani government. Normally, after an election, we take a breather. But not this time, because I don’t want anyone assuming that politics is merely about making promises without delivering,” he said.

Anwar said the Technical Committee, chaired by Treasury secretary-general Johan Mahmood Merican, has already held preliminary meetings with Sabah state secretary Safar Untong to outline implementation parameters.

However, the full committee meeting is expected to take place before mid-January once several cabinet vacancies are resolved.

“We will set clear parameters - the amount, payment phases within a year and so on. All this will be finalised at the technical committee level, followed by the federal and state committees, before being submitted to both the Sabah and the federal cabinets,” he said.

He stressed that having clear parameters is crucial to ensure payments are made in an orderly manner and are legally sound.

Anwar added that certain aspects may require legal amendments, as seen previously during the transfer of electrical regulatory powers to Sabah.

He also stressed that discussions on Sabah’s 40 percent revenue claim should not be viewed as political rhetoric, as the government is committed to implementing it transparently and responsibly.

- Bernama

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