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Tax Relief Incoming: New Refund System for 2026-27 Budget
2 Jun
Summary
- Individuals can claim excess tax refunds within 120 days.
- Companies get refunds for excess minimum tax after three years.
- New tax system aims for fairness and reduced taxpayer burden.
In an effort to enhance tax fairness and ease the burden on taxpayers, the government is poised to implement a new system for refunding excess minimum tax payments in the 2026-27 national budget. This significant tax relief measure is slated for presentation to Parliament on June 11.
Under the proposed framework, individuals can anticipate receiving refunds for any excess tax payments within a 120-day timeframe. For corporate entities, any minimum tax exceeding their final liabilities, after being carried forward for potential future adjustments, will be refunded after a three-year period.
This initiative addresses a long-standing concern regarding the minimum tax system, which requires companies to pay based on turnover regardless of profitability. While current law allows for refunds, delays and administrative hurdles have often prevented timely reimbursements.
Officials indicate the refund process for individuals will be fully automated, with excess payments directly credited to bank accounts. Business leaders have welcomed the proposal, emphasizing the need for reduced business costs and innovative fiscal policies.
