Dubai is set to see an increase in road tolls and parking fees as a 5% Value Added Tax (VAT) is introduced on the Salik and Parkin services. With the implementation of this VAT, the cost of passing through a Salik toll gate during peak hours will rise from Dh6 to Dh6.30. Similarly, off-peak tolls will see an increase from Dh4 to Dh4.20. Additionally, the price of obtaining a Salik tag will also be affected, with in-person purchases moving from Dh100 to Dh105 and online acquisitions jumping from Dh120 to Dh126.
This VAT adjustment extends to public parking services managed by Parkin as well. Standard on-street parking fees during non-peak periods will increase from Dh2 to Dh2.10 per hour, while peak hours will see a rise from Dh4 to Dh4.20 per hour. Premium parking zones, which are currently priced at Dh10 per hour, will now cost Dh10.50 following the VAT inclusion. Meanwhile, multistorey car parks operated by Parkin will adjust their hourly rates from Dh5 to Dh5.25, and the charge for a 24-hour stay will increase from Dh40 to Dh42.
Parking subscriptions and permits around Dubai will not be exempt from these changes. For instance, a three-month parking subscription that previously cost Dh1,400 will now be priced at Dh1,470 with the VAT addition. The changes reflect the UAE’s financial policies and seek to bring these transportation services in line with existing VAT regulations that apply broadly to goods and services across the nation.
The adjustments are part of an ongoing effort by authorities to standardize VAT application, ensuring that transportation expenses reflect the same tax conditions as other sectors. This move is expected to have a significant impact on daily commuters and residents who rely on these services for their transportation needs.