Dubai drivers will soon encounter higher costs for road tolls and parking as a result of a newly implemented 5% Value Added Tax (VAT) on Salik and Parkin services. The adjustments will see the expense of passing through a Salik toll gate during peak hours climb from Dh6 to Dh6.30, while off-peak toll rates will increase from Dh4 to Dh4.20. Additionally, the cost of acquiring a Salik tag will rise, with in-person purchases moving from Dh100 to Dh105 and online transactions shifting from Dh120 to Dh126.
All public parking services managed by Parkin will also be subject to the VAT. Standard on-street parking fees will see an increase, with rates going from Dh2 to Dh2.10 per hour during non-peak times and jumping from Dh4 to Dh4.20 during peak hours. Premium parking zones will not be exempt from these changes, as spaces that currently cost Dh10 per hour will see a rise to Dh10.50 post-VAT implementation. Moreover, in Parkin-operated multistorey car parks, charges will elevate from Dh5 to Dh5.25 per hour, while the 24-hour parking rate will escalate from Dh40 to Dh42.
The financial adjustments will also impact parking subscriptions and permits throughout Dubai. For instance, a three-month parking subscription, which presently costs Dh1,400, will climb to Dh1,470 with the inclusion of VAT. These adjustments reflect the broader financial regulations of the UAE, with the VAT now extending across Salik’s toll network and Parkin’s parking services. According to officials, these changes are meant to ensure that these services adhere to the existing VAT requirements that are already applicable to most goods and services within the country.
The introduction of VAT on these essential services marks a notable shift in Dubai’s approach to managing transportation-related expenses. While the increases may seem modest on a per-use basis, the cumulative effect over time could be significant for frequent users. Authorities have emphasized that the decision to apply VAT to Salik and Parkin is aimed at maintaining consistency with the nation’s broader taxation framework, which seeks to enhance the fiscal sustainability of public services and infrastructure.