Dubai residents are set to experience an increase in road toll and parking fees following the implementation of a 5% Value Added Tax (VAT) on Salik and Parkin services. This change is part of the UAE’s broader financial regulations aiming to align these services with the existing VAT framework applied to most goods and services across the nation.
With the introduction of VAT, the cost for motorists passing through a Salik toll gate during peak hours will rise from Dh6 to Dh6.30. Meanwhile, the toll charge during off-peak times will go up from Dh4 to Dh4.20. The price of acquiring a Salik tag will also see a hike, increasing from Dh100 to Dh105 for in-person purchases and from Dh120 to Dh126 for online transactions.
Parking services managed by Parkin will also be subject to the VAT, affecting both standard and premium parking zones. Non-peak on-street parking rates will increase from Dh2 to Dh2.10 per hour, while peak hour charges will rise from Dh4 to Dh4.20. In premium zones, parking spaces that currently cost Dh10 per hour are expected to go up to Dh10.50. Additionally, in Parkin-operated multistorey car parks, the hourly fee will increase from Dh5 to Dh5.25, with the 24-hour rate climbing from Dh40 to Dh42.
Furthermore, parking subscriptions and permits throughout Dubai will see adjustments due to the VAT. A three-month parking subscription, previously priced at Dh1,400, will now be available for Dh1,470. These changes reflect the authorities’ efforts to incorporate VAT into all applicable services, ensuring consistency with the country’s taxation policies.