Home » Dubai Implements 5% VAT Affecting Salik Tolls and Parking Revenue.

Dubai Implements 5% VAT Affecting Salik Tolls and Parking Revenue.

by admin477351

Dubai’s road users are set to face increased charges for tolls and parking due to the implementation of a 5% Value Added Tax (VAT) on Salik and Parkin services. This adjustment will see the cost of passing through a Salik toll gate during peak hours rise from Dh6 to Dh6.30, while off-peak tolls will move from Dh4 to Dh4.20. Additionally, the price of a Salik tag will now be higher, with in-person purchases increasing from Dh100 to Dh105, and online purchases from Dh120 to Dh126.

The VAT will also extend to all public parking services under Parkin’s management. Standard on-street parking fees during non-peak hours will rise from Dh2 to Dh2.10 per hour, and during peak times, the rate will climb from Dh4 to Dh4.20. Premium parking zones will similarly experience a hike in charges, with spaces that currently cost Dh10 per hour increasing to Dh10.50. Meanwhile, in Parkin-operated multistorey car parks, the hourly rate will grow from Dh5 to Dh5.25, and the 24-hour fee will go up from Dh40 to Dh42.

In addition to individual parking rates, subscriptions and permits across Dubai will also be impacted by the new VAT. For instance, a three-month parking subscription, which currently stands at Dh1,400, will increase to Dh1,470. These changes reflect the UAE’s commitment to integrating VAT into various sectors, aligning Salik’s toll network and Parkin’s parking services with the broader tax framework applied to most goods and services within the nation.

The adjustments in toll and parking fees are part of the UAE’s financial regulations aimed at standardizing tax applications across different services. Authorities have emphasized that these changes are necessary to ensure that road toll and parking services are consistent with existing VAT requirements, thereby maintaining a uniform tax policy throughout the country.

You may also like