Dubai drivers will pay more at toll gates and parking meters from Monday, as Salik and Parkin both begin applying a 5% value-added tax to their charges on 1 June 2026, in line with UAE federal tax regulations.
Salik announced the change via its Instagram account last week. Under the new flexible tariff structure, peak-hour crossings from Monday to Saturday will cost AED 6.30. Off-peak travel, covering 10am to 4pm and 8pm to 1am, will be charged at AED 4.20. No toll applies between 1am and 6am. On Sundays, excluding public holidays and special events, both peak and off-peak rates are set at AED 4.20, with the overnight window remaining free. The company said VAT collected will be remitted to the Federal Tax Authority in accordance with applicable laws.
Parkin confirmed it will apply the 5% VAT across all its public parking services from the same date, covering on-street and off-street bays, seasonal subscriptions, permits, and reservation services. The company was clear that its base parking tariffs are not changing. VAT will be charged separately and passed directly to the Federal Tax Authority.
On the financial impact, Parkin said the change will have no material effect on its future financial position. It also disclosed that retrospective VAT covering the period from 1 February 2024 to 31 May 2026 will be compensated in full by the Roads and Transport Authority under a pre-agreed reimbursement mechanism, meaning the company bears no financial liability for that earlier period.
