Dubai motorists will face increased road tolls and parking fees from Monday as new 5 per cent VAT rates come into force.
Salik, which operates the emirate's road toll network, and Parkin, Dubai's public parking provider, announced last week that the tax charges were to be introduced in line with the UAE's financial regulations.
Salik said the VAT rate would apply to all toll tariffs and activation fees for its tags. The tags are placed on vehicle windscreens and used to register for the toll system and to collect fees.
Parkin said the VAT charge would apply to all of its parking services.
The UAE introduced 5 per cent VAT on the majority of goods and services in January 2018 as part of its plans to diversify the economy. June 1 is the start of the financial year for many companies in the Emirates.
Salik: How much more will drivers pay?
The cost of travelling through Salik's road toll gates during peak hours will rise from Dh6 to Dh6.30 when VAT is included. The off-peak fee will increase from Dh4 to Dh4.20.
With VAT added, the price of a Salik tag will rise from Dh100 to Dh105 if bought in person, and from Dh120 to Dh126 when purchased online.
How many toll gates are there?
Salik has 10 toll gates across the city. The latest two were installed at the Business Bay Crossing on Al Khail Road and in Al Safa South, on Sheikh Zayed Road between Al Meydan Street and Umm Al Sheif Street, in November 2024.
Motorists are charged to pass through each gate, with the toll deducted automatically via the windscreen tags. The tags can be bought online or at service stations and topped up online or through recharge cards.
Parkin: What are the increased fees?
Parkin – set up by the Dubai government in January 2024 – manages on-street and multistorey parking across the emirate. VAT will apply to all its services, from on-street and off-street parking to seasonal cards, permits and reservations.
In April 2025, it introduced variable parking tariffs that increased hourly fees in standard on-street zones from Dh2 during non-peak hours to Dh4 during peak hours.
Motorists parking in these areas will now pay Dh2.10 an hour in non-peak hours and Dh4.20 in peak hours.
Higher charges are levied in premium spaces – in busy and densely populated areas such as Downtown Dubai, Deira and Jumeirah – and fees vary significantly according to the parking zone.
For example, Parkin's website states that in the Code E and Code I parking zones in Jumeirah Lakes Towers, the hourly rate is Dh10 in non-peak and peak hours. This will increase to Dh10.50 under the new VAT rules.
In multistorey car parks managed by Parkin, the Dh5 hourly rate will rise to Dh5.25, while the charge for parking for 24 hours will increase from Dh40 to Dh42.
The VAT charges will also be incurred on parking subscriptions – where motorists can pay up front to cover one month to one year – in specific areas of Dubai.
A three-month parking subscription in Dubai Hills is priced at Dh1,400 for three months, which will increase to Dh1,470 once the 5 per cent VAT fee is factored in.
Salik's Dh471 million tax bill
In a notice issued to the Dubai Financial Market on May 15, Salik said the 5 per cent VAT rate had also been applied retrospectively to toll revenue and associated charges, from July 1, 2022, to March 31, 2026, following a review of its VAT procedures.
The Dh471 million in VAT owed to the FTA – including late payment penalties – will be reimbursed by Dubai's Roads and Transport Authority.
Salik said shareholders would be protected from the impact of VAT on the company's revenue under its support and financial compensation agreement with the RTA.
