Dubai drivers will experience increased costs for road tolls and parking as a 5% Value Added Tax (VAT) is implemented on Salik and Parkin services. The adjustments mean that passing through a Salik toll gate during peak hours will now cost Dh6.30, up from Dh6, while off-peak tolls will increase from Dh4 to Dh4.20. Additionally, Salik tag prices will rise, with in-person purchases moving from Dh100 to Dh105 and online purchases climbing from Dh120 to Dh126.
Public parking services managed by Parkin will also see price hikes due to the VAT. Standard on-street parking rates will increase to Dh2.10 per hour during non-peak periods, up from Dh2, and from Dh4 to Dh4.20 during peak hours. Premium parking zones are affected as well, with spaces that currently cost Dh10 per hour rising to Dh10.50. In Parkin-operated multistorey car parks, hourly fees will go up from Dh5 to Dh5.25, and the 24-hour rate will see an increase from Dh40 to Dh42.
Moreover, parking subscriptions and permits throughout Dubai will be impacted. For instance, a three-month parking subscription currently priced at Dh1,400 will increase to Dh1,470 with the application of VAT. These changes are part of a broader implementation of the UAE’s financial regulations, ensuring that Salik’s toll network and Parkin’s parking services adhere to existing VAT requirements applied to most goods and services in the nation.
The authorities have introduced these changes to align these essential services with the VAT system already prevalent in various sectors across the country. While the increases are modest, they reflect a broader policy to integrate taxation uniformly across multiple services, thereby maintaining consistency in the nation’s economic framework.