Hotels and furnished apartments will have to pay more on the room tariff by way of the newly-introduced municipal tax on top of Value-Added Tax (VAT) and the already existing service tax.
A guest will have to pay approximately 25% to 30% extra on their room tariff.
This will be in addition to food and beverages and other taxable facilities in the hotel.
The Ministry of Municipal and Rural Affairs has imposed a flat levy of 5% on each room occupied in hotels and furnished apartments across the Kingdom.
The levy for rooms in three-star hotels and downwards will be 2.5 %.
This is on top of 5% VAT which is collected by the General Authority of Zakat and Tax (GZAT).