Daijiworld Media Network - Dubai
Dubai, May 23: Parking services in Dubai will become slightly more expensive as operator Parkin announced the introduction of a 5 per cent Value Added Tax (VAT) on all its services starting June 1.
The new tax will apply across all parking categories, including on-street and off-street parking, seasonal parking cards, permits, and reservations. The company said the decision has been implemented in coordination with relevant authorities in line with UAE tax regulations.
Parkin stated that the VAT will be a pass-through charge collected on behalf of the Federal Tax Authority and will not alter the underlying parking tariff structure.
Earlier this year, the company had already submitted a proposal to the Roads and Transport Authority (RTA) seeking revisions to parking tariffs and seasonal card structures. The proposal aimed to reduce price imbalances and align with Dubai’s variable pricing system introduced previously.
Parkin also indicated that if its proposed changes are approved, the weighted average public parking tariff could rise further, alongside adjustments intended to ensure long-term pricing balance and revenue stability.
According to earlier market updates, parking costs in Dubai rose significantly in 2025, with average hourly rates increasing by more than 50 per cent following the introduction of variable pricing models.
In addition to parking fees, Dubai’s toll operator Salik also confirmed that it will implement a 5 per cent VAT on toll charges and tag activation fees from the same date.
Salik clarified that its core tariff structure will remain unchanged and that the VAT component will be passed directly to the Federal Tax Authority. The company added that the new tax will not affect its profitability or financial position going forward.
It also noted that retrospective VAT for the period from July 2022 to May 2026 will be fully compensated by the RTA, ensuring no financial impact on the company for that duration.
Parkin, meanwhile, projected continued expansion of its parking network and expects steady revenue growth in the coming year, supported by increased demand and portfolio expansion across Dubai’s urban zones.