KUALA LUMPUR, 5 Jan 2018:
The implementation of the 5% value-added tax (VAT) by Saudi Arabia will have no direct impact on first-time haj pilgrims under Tabung Haji’s (TH) package.
TH group managing director and chief executive officer Datuk Seri Johan Abdullah said in a statement yesterday the haj cost remained at RM9,980 per pilgrim.
“TH has taken into consideration the VAT factor in calculating the operational cost for the 1439 Hijrah haj season.
“However, the total haj subsidy to be borne by TH is expected to increase to RM400 million,” he said in response to public grouses and confusion over the VAT implementation and its impact on the haj operational cost and on Malaysian pilgrims.
The VAT was introduced by Saudi Arabia and the United Arab Emirates for the first time on Jan 1, with 5% tax imposed on most goods and services.
In looking after the welfare of Malaysian pilgrims, to enable them to perform the haj in comfort, Johan said TH had since 2009, borne the haj subsidy amounting to over RM1 billion.
– Bernama