Dubai drivers will see an increase in road tolls and parking fees due to the implementation of a 5% Value Added Tax (VAT) on Salik and Parkin services. This adjustment means that passing through a Salik toll gate during peak times will now cost Dh6.30, up from Dh6, while off-peak hours will see a rise from Dh4 to Dh4.20. Additionally, the price of obtaining a Salik tag is set to increase, with in-person purchases going from Dh100 to Dh105 and online acquisitions rising from Dh120 to Dh126.
The VAT will also impact public parking services managed by Parkin. Standard on-street parking charges will see a slight uptick, with non-peak period rates increasing from Dh2 to Dh2.10 per hour and peak period rates climbing from Dh4 to Dh4.20. In premium parking zones, spaces that previously cost Dh10 per hour will now be priced at Dh10.50 following the VAT addition. Furthermore, parking fees in Parkin-operated multistory car parks will rise from Dh5 to Dh5.25 per hour, with the 24-hour rate moving from Dh40 to Dh42.
Those with parking subscriptions and permits across Dubai will also feel the impact of the VAT. A three-month parking subscription, previously priced at Dh1,400, will now cost Dh1,470. These adjustments are part of broader financial regulations in the UAE, which aim to bring Salik’s toll network and Parkin’s parking services in line with the VAT requirements already applied to most goods and services in the country.
Authorities have clarified that these changes are necessary to ensure consistency with existing VAT guidelines. The introduction of the VAT on these services reflects a broader strategy to align the pricing of toll and parking services with the country’s financial regulations. As a result, both motorists and daily commuters will need to budget for these slight increases in their daily travel expenses.