Dubai Motorists Brace for Higher Monthly Driving Bills as VAT on Salik, Parking Kicks In
Motorists in Dubai are preparing for higher monthly transportation costs following the implementation of a 5% Value Added Tax (VAT) on Salik toll fees and public parking charges. The new tax measure is expected to increase routine commuting expenses for thousands of residents who rely on private vehicles for daily travel.
Under the updated pricing structure, drivers will now pay VAT on top of existing Salik toll charges whenever they pass through toll gates across Dubai. Public parking fees in many areas of the city will also include VAT, resulting in slightly higher costs for motorists who frequently use paid parking facilities.
Transport experts note that while the increase per transaction may appear modest, the cumulative impact could be significant for regular commuters, delivery drivers, and businesses operating vehicle fleets. Residents who cross multiple Salik gates daily and use paid parking regularly are likely to notice the biggest increase in their monthly transportation budgets.
Authorities have advised motorists to review their commuting patterns and parking habits to better manage expenses. Some drivers may consider alternative travel options, including public transportation, carpooling, or route adjustments to reduce toll and parking costs.
The move aligns with the UAE's broader tax framework and is expected to contribute additional revenue while maintaining Dubai's high-quality transport infrastructure and services.
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