In a move aligned with the United Arab Emirates’ financial regulations, Dubai drivers will soon experience increased costs for road tolls and parking services as a 5% Value Added Tax (VAT) is implemented on Salik and Parkin services. This adjustment will see the cost of passing through Salik toll gates during peak times rise from Dh6 to Dh6.30. Meanwhile, off-peak toll charges will increase from Dh4 to Dh4.20. Additionally, the price of obtaining a Salik tag will be affected, with costs for in-person purchases climbing from Dh100 to Dh105, and online purchases from Dh120 to Dh126.
The VAT extension also impacts public parking services managed by Parkin, where standard on-street parking rates will see a rise. During non-peak periods, the hourly rate will increase from Dh2 to Dh2.10, and during peak hours, it will go from Dh4 to Dh4.20. Premium parking zones are not exempt from these changes; for example, spaces that currently cost Dh10 per hour will be adjusted to Dh10.50 with the new tax.
Furthermore, parking facilities operated by Parkin in multistorey car parks will experience a rise in fees. The cost for an hour of parking will increase from Dh5 to Dh5.25, while the 24-hour rate will go up from Dh40 to Dh42. Regular users will also need to budget for higher costs as parking subscriptions and permits in Dubai are set to increase. A three-month parking subscription that currently costs Dh1,400 will rise to Dh1,470 following the VAT implementation.
This VAT application is a part of a broader strategy to align these specific services with the existing VAT framework that affects most goods and services across the UAE. Authorities have stated that the introduction of VAT on Salik and Parkin services is intended to harmonize these charges with the nation’s tax policies.
