Motorists in Dubai will face higher costs for road tolls and parking as a 5% Value Added Tax (VAT) is now being applied to Salik and Parkin services. The new VAT introduction affects toll charges and parking fees, aligning these services with the country’s existing tax regulations on most goods and services.
Under the updated pricing, passing through a Salik toll gate during peak hours will now cost Dh6.30, up from Dh6, while off-peak tolls will rise from Dh4 to Dh4.20. Additionally, the price of a Salik tag has increased, with in-person purchases climbing from Dh100 to Dh105, and online purchases going from Dh120 to Dh126.
This VAT extension also impacts public parking services operated by Parkin. For standard on-street parking, the rates have been adjusted from Dh2 to Dh2.10 per hour during non-peak times and from Dh4 to Dh4.20 during peak hours. Premium parking zones are not exempt from these changes; for instance, spaces that previously cost Dh10 per hour will now be Dh10.50.
In Parkin-operated multistorey car parks, the hourly parking fees will increase from Dh5 to Dh5.25, and the 24-hour rate will adjust from Dh40 to Dh42. Parking subscriptions across Dubai aren’t spared either, with a three-month subscription rising from Dh1,400 to Dh1,470 due to the added VAT.
The UAE authorities have implemented these financial adjustments as part of broader efforts to bring Salik and Parkin services in line with VAT requirements present across numerous sectors in the country. This move reflects an ongoing effort to standardize tax application in various public services and consumer goods.