Dubai motorists will pay 5% VAT on parking, Salik tolls and tag fees from June 1, 2026Last updated: May 22, 2026 | 12:123 MIN READShares in both Parkin and Salik rose on the Dubai Financial Market after the announcement.GN Archives 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.How much will Dubai parking cost now?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.Premium parking during peak hoursCurrent charge: Dh6 per hourFrom June 1 with 5 per cent VAT: Dh6.30 per hourIncrease: 30 fils per hourThis applies during peak demand periods in premium zones such as high-traffic commercial and business districts.Peak hours are:6am to 10am4pm to 8pmStandard parking during peak hoursCurrent charge: Dh4 per hourFrom June 1 with VAT: Dh4.20 per hourIncrease: 20 fils per hourOff-peak parkingCurrent standard rates of Dh4 per hour in many zones will also rise to:Dh4.20 per hourIf you are in lower-priced zones:Dh3 becomes Dh3.15Dh2 becomes Dh2.10What remains free?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.Get updated faster and for FREE: Download the Gulf News app now - simply click here.Sunday parking chargesSunday parking will follow a slightly different structure.Peak hoursCurrent: Dh4New price: Dh4.20Off-peakCurrent: Dh4New price: Dh4.20After midnight (1am to 6am)No tariffParkin 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.How much will Salik cost now?Salik has also confirmed that VAT will now apply to toll gate crossings and tag activation fees.This means drivers will pay:Peak-hour Salik crossingsCurrent toll: Dh6With VAT: Dh6.30 per crossingIncrease: 30 filsPeak-hour timings:6am to 10am4pm to 8pmMonday to SaturdayOff-peak Salik crossingsCurrent toll: Dh4With VAT: Dh4.20 per crossingIncrease: 20 filsApplies during:10am to 4pm8pm to 1amMonday to SaturdaySunday SalikCurrent toll: Dh4With VAT: Dh4.20 per crossingLate-night crossingsBetween 1am and 6amStill freeNo VAT applies because no toll is charged.Salik tag activation cost also risesSalik’s tag activation fee will also attract VAT.Tag feeCurrent: Dh50New: Dh52.50Dh120 starter package breakdownCurrent package includes:Dh50 tag feeDh50 prepaid toll creditDh20 delivery/setupVAT 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.What does this mean for regular commuters?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.Parkin and Salik shares jump after VAT clarityInvestors 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.From June 1:Dh6 parking becomes Dh6.30Dh4 parking becomes Dh4.20Dh6 Salik becomes Dh6.30Dh4 Salik becomes Dh4.20Dh50 Salik tag becomes Dh52.50For 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.Also In This PackageDhanusha is a Chief Reporter at Gulf News in Dubai, with her finger firmly on the pulse of UAE, regional, and global aviation. She dives deep into how airlines and airports operate, expand, and embrace the latest tech.