MO,4/1/2018, KUALA LUMPUR: The cost of performing the haj for Malaysian pilgrims for the upcoming season will remain at RM9,980. Tabung Haji (TH) said it had taken into account the impact of the five per cent Value-Added Tax (VAT) introduced by the Saudi Arabian government into the cost of performing the Haj for the 1439H/2018 season.
Its Group Managing Director and Chief Executive officer Datuk Seri Johan Abdullah said the VAT implementation had not incurred additional cost directly to pilgrims performing the Fifth Pillar Islam for the first time. “However, the overall subsidy for the Haj borne by TH is expected to increase to RM400 million,” he said in a statement.
He said the increase in the subsidy was announced last month by TH. Johan said to ensure pilgrims welfare is taken into account in performing the Haj, TH had absorbed RM1 billion in Haj subsidy. Saudi Arabia introduced a five per cent VAT from Monday, which applies to most goods and services in the kingdom.