Home » Dubai Implements 5% VAT on Transportation Tolls and Parking Services

Dubai Implements 5% VAT on Transportation Tolls and Parking Services

by admin477351

Dubai’s drivers are set to experience an uptick in road tolls and parking fees due to the implementation of a 5% Value Added Tax (VAT) on Salik toll gates and Parkin parking services. This change will see the toll for passing through a Salik gate during peak traffic hours rise from Dh6 to Dh6.30, while off-peak rates will go up from Dh4 to Dh4.20. The price of acquiring a Salik tag is also affected, with in-person purchases increasing from Dh100 to Dh105, and online purchases going from Dh120 to Dh126.

In addition to tolls, the VAT extends to public parking services managed by Parkin. This means standard on-street parking rates will see a slight hike, increasing from Dh2 to Dh2.10 per hour during non-peak times, and from Dh4 to Dh4.20 during peak hours. Premium parking zones are not exempt from these changes; for instance, an hour of parking that presently costs Dh10 will soon cost Dh10.50 with the new tax.

Parkin-operated multistorey car parks will also reflect these adjustments in their pricing. The hourly parking fee will increase from Dh5 to Dh5.25, while the rate for a full day of parking will climb from Dh40 to Dh42. Additionally, those who use parking subscriptions will see changes; a three-month parking subscription, currently priced at Dh1,400, will rise to Dh1,470 once VAT is applied.

These adjustments are part of UAE’s broader financial regulatory framework, ensuring that Salik’s toll network and Parkin’s parking services are in line with the VAT requirements that are already applicable to most goods and services throughout the country. Authorities have indicated that these measures are essential for maintaining consistency across various sectors in the UAE.

You may also like