Dubai drivers will face increased costs for road tolls and parking due to the implementation of a 5% Value Added Tax (VAT) on Salik and Parkin services. This adjustment is part of the UAE’s broader financial regulations and aims to align with the existing VAT framework applied to most goods and services in the country. As a result, motorists will see a rise in expenses at toll gates and parking facilities across the city.
Under the revised pricing, the cost of passing through a Salik toll gate during peak hours will go up from Dh6 to Dh6.30, while off-peak toll charges will increase from Dh4 to Dh4.20. Additionally, the price of purchasing a Salik tag will see an increase, with physical purchases rising from Dh100 to Dh105 and online purchases going from Dh120 to Dh126.
The VAT is also applicable to all public parking services managed by Parkin, leading to higher parking rates. Standard on-street parking fees will increase from Dh2 to Dh2.10 per hour during off-peak times, and from Dh4 to Dh4.20 during peak hours. Premium parking zones will see similar adjustments, with hourly rates rising from Dh10 to Dh10.50. In Parkin-operated multistorey car parks, the hourly fee will jump from Dh5 to Dh5.25, and the 24-hour rate will increase from Dh40 to Dh42.
Furthermore, parking subscriptions and permits throughout Dubai will be affected by the VAT. For instance, a three-month parking subscription that currently costs Dh1,400 will be adjusted to Dh1,470. These changes are designed to ensure that Salik’s toll network and Parkin’s parking services remain compliant with the UAE’s VAT requirements, maintaining a consistent tax application across various sectors.