Dubai motorists will pay 5% VAT on parking, Salik tolls and tag fees from June 1, 2026
Dubai: Dubai motorists will soon see slightly higher parking and Salik costs, with a 5 per cent VAT charge being added to public parking services, toll gate crossings and Salik tag activation fees from June 1, 2026.
The tariff itself is not changing — but the tax means drivers will pay more at the point of use.
For everyday motorists, that means a few extra fils on smaller charges, but regular commuters using premium parking zones and multiple Salik crossings could see their transport bills rise more noticeably over time.
Parkin has confirmed in a DFM discloure that VAT will apply to all of its parking services, including on-street and off-street parking, seasonal cards, permits and reservations.
Current charge: Dh6 per hourFrom June 1 with 5 per cent VAT: Dh6.30 per hour
This applies during peak demand periods in premium zones such as high-traffic commercial and business districts.
Current charge: Dh4 per hourFrom June 1 with VAT: Dh4.20 per hour
Current standard rates of Dh4 per hour in many zones will also rise to:
There is no tariff for overnight parking between 1am and 6am under the new Parkin schedule shown in the company’s customer advisory.
No VAT applies where there is no parking tariff.
Sunday parking will follow a slightly different structure.
Parkin also confirmed that the underlying parking tariffs remain unchanged and that VAT will be applied in accordance with statutory requirements, with the tax collected and accounted for to the Federal Tax Authority (FTA).
Accordingly, the application of VAT from June 1, 2026 is not expected to have an impact on the Company’s financial position going forward, it clarified.
MallsDeira City Centre (Monday to Saturday) and Mall of the Emirates 6 am to 4 am Monday to Friday)
Public parking spaces Dubai’s public parking is officially divided into 11 main zones (categorised from A to K). However, the city’s managing authority, Parkin, features over 20 specific zone variations (e.g., A, B, C, D, AP, BP, CP, DP, E, F, G, H, I, J, K). Timing for most zones is from 8 am to 10 pm.
Other parkingAl Qusais First, Al Karama, Madinat Dubai Al Melaheyah (code W) 24 hours Monday to Sunday Trade Center First, Trade Center Second, Zaa’beel Second (code X) 24 hours Monday to Sunday
Public holidays and Sundays are free most zones.
Salik has also confirmed that VAT will now apply to toll gate crossings and tag activation fees.
No VAT applies because no toll is charged.
Salik’s tag activation fee will also attract VAT.
VAT only applies to the taxable fee components.
That means motorists should expect the payable amount to rise depending on how VAT is applied to eligible charges.
The increase may seem small on a single trip, but it can add up for regular commuters.
A driver crossing four Salik gates a day during peak hours currently pays Dh24, but from June 1 that will rise to Dh25.20 — or about Dh26.40 extra over a 22-working-day month.
Similarly, someone parking for two hours a day in a premium zone now pays Dh12, but will pay Dh12.60 after VAT, adding around Dh12 more over 20 working days. For motorists using both Salik and paid parking every day, the added monthly cost becomes more noticeable.
Investors reacted positively after both companies disclosed that VAT would be treated as a pass-through charge collected on behalf of the Federal Tax Authority, meaning the tax is not expected to hit company profitability.
Shares in both Parkin and Salik rose on the Dubai Financial Market after the announcements, as investors responded to the financial clarity around the VAT implementation.
For occasional drivers, the increase may be small.
But for daily commuters using toll roads and premium parking regularly, the extra cost could quietly add up over the course of a month.
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