Umrah pilgrimage can be performed at any time of the year which makes it even more convenient for Muslims to offer their religious practices. This nature of Umrah makes it easier for the students, families, and working pilgrims to experience their sacred pilgrimage. However, as demand for the divine act of worship grows, so do the costs. There are many pilgrims who are now facing financial pressures due to the increase in rates which comes from multiple aspects of the journey. The increase in currency exchange rates and rising airfares cost have also contributed to the rise in expenses of the Umrah 2025. But one of the most prominent factors that is impacting the affordability level of this sacred pilgrimage since last year, is Saudi Arabia’s VAT that is implemented on travelling services. These Value Added Tax are mainly applied to accommodations, flights, guides, and various other Umrah Packages.
There are various Budget Umrah packages that now cost 10 to 15% more as compared to a few years ago. For pilgrims who prefer performing their religious worships on a reasonable budget, now come across the question that can they still perform their Umrah practice on a reasonable budget? The answer is yes, pilgrims can still perform their Umrah on a budget with smart planning and preparations. This post is mainly designed for the UK pilgrims who want to learn how VAT affects the Umrah costs, what are the essential facts that one must figure out during their booking process, and how can pilgrims make right choices for an affordable and uncompromised package on safety and other services.
There are various tips that pilgrims can follow in order to experience affordability from transparent pricing to off-peak travelling months. You will explore effective strategies to experience the religious Umrah so that you can ideally focus on the actual goals of the journey.
What is VAT in Saudi Arabia? A Quick Overview
It was officially announced in 2018, at a rate of 5%, which was part of Saudi Arabia’s broader economic reform plan under Vision 2030 to minimize the reliance on oil revenue. But now just two years later in 2020, the percentage was tripled to 15% which happened because of the fall in oil rates and the overall impact. VAT now a days is applied on various factors from real estate to tourism, which means that most of the services applied within the packages for Umrah such as accommodations, transfer, airfares, flights, guided tours, and in some cases even processing fees, are indulged with 15% tax, which makes it difficult for various travellers to perform their religious practices. For which it is important for the pilgrims to wisely choose the best Hajj and Umrah travel agency in UK that makes it easier for the performers to experience their Umrah act. VAT is mainly added to the packages when it comes to the final pricing, for which it is important to go through some of the essential tips that might help you experience the Umrah pilgrimage in affordable ways.
How Does Saudi VAT Affect Budget Umrah Packages?
The involvement of 15% VAT has mainly impacted budget Umrah packages, ideally because of the direct cost increases on basic services of the journey. The accommodations in the holy cities now involve VAT which increases the prices of the overall package.
What are Some Smart Ways to Minimize VAT Impact on Your Budget Umrah
It is obvious that Saudi VAT is unavoidable, but there are various ways UK pilgrims can make their Umrah packages more affordable which might reduce the financial impact of the tax. Firstly it is important for the pilgrims to book for their religious packages early so that you might also experience early-bird discounts and deals, making the package quite affordable. Other than that you can also select off-peak months for performing your sacred worship which can help you experience low to moderate pricing. Selecting your Umrah packages wisely can not only reduce the base price of the package but it automatically reduces the VAT. Other than that it is also essential for the pilgrims to choose for the travel agencies like Dua Travels UK that offer transparent pricing which makes your journey even more affordable.
Final Words
It is important to explore the promotions and discounts that are offered by accommodations, travel agencies and mosques which come under charities. Pilgrims can also select Cheap Umrah Packages UK that are offered by various travel operators that make your budget reasonable and convenient.
