Overview
- Parkin and Salik said on May 22 that they will apply a 5% value‑added tax from June 1 to parking services and Salik toll tariffs and tag activation fees.
- Parkin will also phase out cash at on‑street parking meters from June 1 and is urging drivers to use the Parkin app, Nol cards, Dubai Now or the RTA app for payments.
- Salik said VAT collected will be remitted to the Federal Tax Authority and that the Roads and Transport Authority will fully compensate retrospective VAT for July 1, 2022 to May 31, 2026 so Salik reports no past-period impact.
- Motorists will see modest price increases because VAT is added to existing charges, for example Salik peak tolls rise to about Dh6.30 and a Dh4 parking fee becomes Dh4.20.
- The move formalises earlier policy trends — the UAE introduced 5% VAT in 2018 and Dubai has used variable toll and parking pricing since 2024–25 — and will speed the shift to digital payments and more automated parking enforcement.