The United Arab Emirates and Saudi Arabia had long provided tax-free and provided heavy subsidies for its residents as well as tourists alike. 2018 will mark the start of the implementation of VAT (Value Added Taxes); Along with its partners across the GCC (Gulf Cooperation Council), the Kingdom of Saudi Arabia has chosen to implement a standard VAT tax rate of 5%.
The main purpose of VAT in any nation is to deploy it towards the development of government systems like education, healthcare and other services.
Alhamdulillah (all praises to Allah), it is one of the LOWEST rates in the world!
This means, hotel, transport, etc prices will also rise due to these taxes. This in turn will have an impact on the Umrah and Hajj packages offered by Hahnemann Travel & Tours.
However, there will be no compromise on the, ibadah according to Quran & Sunnah, experience, quality and comfort as Hahnemann Travel & Tours will always strive to fulfill its amanah (responsibility) for Allah Subhan-Allah ta’allah (Glory be to Allah) and its beautiful pilgrims that have been invited by the Almighty Creator!
5% Municipal Tax will also be implemented on Feb 2018 onwards on top of the existing VAT 5% and service taxes.
Hotel Guests are expected to pay an increase of 25% – 30% compared the new implementation of the VAT & Municipality Taxes.
The new municipal tax is applied on each occupied room.