Hajj and Umrah to Become Costlier – Research Snipers

Tuesday, May 12, 2020

As per the experts, the Hajj and Umrah pilgrimages are to become costlier as the Kingdom of Saudi Arabia has announced a threefold surge in the value-added-tax (VAT).

Mohamed Ibrahim, who is an Istanbul-based economic expert, the economy of Saudi Arabia has come under a double hit because of the collapse of the global crude oil prices and owing to the steps taken for controlling the COVID-19 outbreak.

The measures also include the halting of the cost-of-living allowance to meet with the negative effect of the COVID-19.

Ibrahim said that these measures will be surging the cost of a lot of things which includes the Hajj and Umrah. He also said that the Saudi authorities might increase the Hajj and Umrah fees to help increase the severity of the Kingdom’s budget deficit.

According to the official figures, the pilgrimages account for more than $12 billion in revenue for the Kingdom on a per-year basis. They contribute nearly 20 percent to the non-oil GDP of the Kingdom, and nearly 7 percent to the entire GDP.

Previously, Mohammad al-Jadaan, the finance minister of Saudi Arabia told that the VAT rates will be surged from 5 percent to 15 percent as of July. He indicated that the Kingdom relies heavily on oil revenues, as the oil prices have collapsed to a greater extent, and that has affected the public revenues and has led to an increased budget deficit.


Source: https://www.researchsnipers.com/hajj-and-umrah-to-become-costlier/