KUALA LUMPUR: The Dewan Rakyat was told that the increase in the cost of performing the haj is due to a significant increase in the value-added tax (VAT) rate in Saudi Arabia from five per cent to 15 per cent since 2020.
Minister in the Prime Minister's Department (Religious Affairs) Datuk Dr Mohd Na'im Mokhtar said ther factors include the inflation rates and taxation in Saudi, the exchange rate between the Malaysian ringgit, Saudi Riyal and United States Dollar; and ongoing expansion projects in Makkah and Madinah.
He said the increase in haj costs was unavoidable as it is subjected to factors beyond the control of Lembaga Tabung Haji (TH).
"TH is always attentive and meticulously reviews the costs of the haj due to the new regulations and taxes introduced by the Saudi government.
"Additionally, there are fees imposed by Saudi authorities for various services provided for the welfare and comfort of haj pilgrims in the holy land.
"The significant increase in the VAT rate from 5 per cent to 15 per cent since July 2020 is also one of the noticeable causes of the cost escalation," he said during minister's question time in Dewan Rakyat, today.
Na'im said this in response to Mohd Shafizan Kepli (GPS-Batang Lupar) on factors contributing to the increase in the cost of performing the haj, as well as the new conditions and qualifications set.
Na'im added that TH, however, is continuously making efforts to control the increase in haj costs, including through the signing of long-term agreements with the Saudi government on flights, accommodations, meal provisions and other services.
"Throughout the agreement, fixed prices can be achieved for a certain period and not be increased each year.
"Meanwhile, the terms and qualifications for performing Hajj in 2023 are the same as the previous Hajj season, unless new regulations are being enforced by the Saudi government."
In October, TH announced an estimated increase in the cost of performing Hajj by up to 11 per cent next year (1445H/2024M).
Its chairman Tan Sri Azman Mokhtar reportedly said the significant factors were beyond TH's control as it involved accommodation, transportation, flights, meals, and various service charges.
He added that the increase in costs was also a result of the current economic situation following the Covid-19 pandemic.
