The cost for performing haj this year is expected to exceed RM25,000 per person following the increase in taxes and new service charges imposed by the Saudi Arabian government.
Lembaga Tabung Haji (TH) Haj Executive Director Datuk Seri Syed Saleh Syed Abdul Rahman said the pilgrims fund board predicted that the cost would continue to rise in the years to come.
However, he assured that TH would continue to subsidise the cost for all first-time pilgrims under muassasah.
“The cost of Haj is the direct cost paid to obtain services to perform Haj such as the cost of flights and accommodation which covers about 70 per cent of the total cost.
“Other costs include meals, bus transportation, tents in Arafah and Mina as well as Mutawif services for 40-45 days.
“Almost all of these services are provided in Saudi Arabia and have been affected by the increase in Value Added Tax (VAT) and inflation rates there.
“Apart from direct costs, TH also fully bears the indirect costs which include Haj preparation courses, publication of handbooks, health services and services of Haj staff. The total indirect cost alone reaches RM60 million annually,” he said in a statement today.
In 2019, the cost for first-time Haj pilgrims was RM22,900 but increased to RM25,000 last year after the VAT rate in Saudi Arabia was increased from five to 15 per cent, aside from imposing other additional service charges.
Syed Saleh also pointed out that on top of all that, there would be other additional charges following the new standard operating procedures (SOP) introduced in the kingdom this year.
He said factors such as inflation, movement of foreign currency, the introduction of new charges and taxes, as well as improved services and development in Makkah and Madinah had affected the cost for Haj.
“TH has maintained the haj payment rate of RM9,980 for the past 13 years though the cost of performing the haj has increased every year.
“Between 2001 and 2019, the Haj payment has increased by 16 per cent while the Haj cost has jumped by 139 per cent due to factors beyond TH’s control.
“TH’s records show that RM2 billion has been channelled to pilgrims in the form of financial assistance for Haj since 2001.”
According to Syed Saleh, as of today, Saudi Arabia has yet to make an official announcement regarding this year’s pilgrimage.
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