Dubai drivers will soon experience higher charges for road tolls and parking due to the implementation of a 5% Value Added Tax (VAT) on Salik and Parkin services. This new VAT policy affects the cost of passing through Salik toll gates, with peak hour tolls increasing from Dh6 to Dh6.30 and off-peak tolls rising from Dh4 to Dh4.20. Additionally, the price of purchasing a Salik tag will also go up, with in-person purchases climbing from Dh100 to Dh105, and online purchases from Dh120 to Dh126.
The newly imposed VAT will also impact all public parking services managed by Parkin, leading to a slight increase in standard on-street parking rates. During non-peak periods, the hourly rate will increase from Dh2 to Dh2.10, while peak hour charges will go from Dh4 to Dh4.20. Premium parking zones will not be exempt from these changes, with spaces that currently cost Dh10 per hour set to rise to Dh10.50.
In Parkin-operated multistorey car parks, hourly parking fees are slated to increase from Dh5 to Dh5.25, and the rate for 24-hour parking will go up from Dh40 to Dh42. Those who hold parking subscriptions and permits will also feel the effects, as a three-month parking subscription that currently costs Dh1,400 will be adjusted to Dh1,470 once the VAT is applied.
These adjustments are part of the United Arab Emirates’ financial regulations, aiming to align toll and parking services with the VAT requirements already applied to most goods and services in the region. Authorities assert that these changes are necessary to ensure compliance with the country’s existing tax framework, impacting Salik’s toll network and Parkin’s parking operations across Dubai.