In a move that will affect motorists across Dubai, road toll and parking charges are set to rise following the introduction of a 5% Value Added Tax (VAT) on services provided by Salik and Parkin. These adjustments come as part of the UAE’s broader financial regulations, aligning these transportation services with the VAT applied to most goods and services in the country.
Under the updated pricing structure, the cost to pass through a Salik toll gate is increasing. During peak hours, the toll will rise from Dh6 to Dh6.30, while off-peak rates will go from Dh4 to Dh4.20. Additionally, acquiring a Salik tag will be more expensive, with in-person purchases climbing from Dh100 to Dh105 and online purchases from Dh120 to Dh126.
Public parking services managed by Parkin will also see an uptick in charges due to the new VAT implementation. Standard on-street parking rates will increase slightly, from Dh2 to Dh2.10 per hour during non-peak periods, and from Dh4 to Dh4.20 during peak hours. Premium parking zones are not exempt from these changes; for instance, spaces currently costing Dh10 per hour will now be priced at Dh10.50.
The changes extend to Parkin-operated multistorey car parks, where hourly parking fees will rise from Dh5 to Dh5.25, and a 24-hour rate will move from Dh40 to Dh42. Even parking subscriptions and permits are affected; a three-month subscription will increase from Dh1,400 to Dh1,470, reflecting the VAT adjustment.
These financial updates are part of the UAE’s effort to ensure that transportation services are in line with the existing VAT requirements, which have been applied to a wide range of products and services throughout the nation. Authorities have indicated that these changes are necessary to maintain consistency within the country’s taxation framework.