The VAT on Salik and parking fees has officially come into effect in Dubai, adding to transport costs for motorists already facing higher fuel prices this month.
From June 1, drivers are now required to pay 5 per cent VAT on Salik tolls, public parking fees and related services. While the increase per transaction may appear small, frequent road users say the additional costs are likely to have a noticeable impact on their monthly budgets.
What has changed for drivers?
With the new VAT charges in place, Salik tolls have increased slightly across Dubai’s road network. Motorists now pay Dh4.20 instead of Dh4 during off-peak hours and Dh6.30 instead of Dh6 during peak periods. Public parking fees are also now subject to the 5 per cent VAT charge.
The changes come at a time when fuel prices have also increased for June, further adding to the overall cost of driving for many residents.
Residents become more conscious of transport spending
The increase in transport-related charges is expected to raise monthly driving costs for many motorists across Dubai.
For frequent commuters, the combined impact of higher fuel costs, VAT on tolls and parking fees could lead to higher monthly transport bills. Some motorists are considering alternative routes, while others are reassessing larger decisions, such as adding another vehicle to their household.
The introduction of VAT on Salik and parking marks another factor for drivers to consider when planning their monthly budgets, particularly for those who rely on Dubai’s road network every day.
