Dubai Motorists to Pay More as 5% VAT Applies to Salik From June 2026

Dubai motorists will soon face slightly higher commuting costs as Salik Company officially confirmed that a 5% value-added tax (VAT) will be applied to toll charges starting from June 1, 2026.

The VAT will apply across all 10 Salik toll gates in Dubai, affecting both toll usage charges and Salik tag activation fees. While the increase per trip may appear small, frequent commuters are expected to notice the impact on their monthly driving expenses.

Key Highlights

• 5% VAT on Salik begins from June 1, 2026.
• Applies to all Dubai Salik toll gates.
• Peak-hour toll rises from Dh6 to Dh6.3.
• Off-peak toll increases from Dh4 to Dh4.2.
• VAT also applies to Salik tag activation fees.
• No VAT charged retrospectively to motorists.
• RTA will cover past VAT liabilities owed to the FTA.

Which Salik Services Will Include VAT?

The 5% VAT will apply to:

• Salik toll gate usage charges.
• Salik tag activation fees.

Salik confirmed that all VAT collected will be transferred directly to the UAE Federal Tax Authority (FTA) in line with national tax regulations.

What About Previous Salik Trips?

Salik also revealed that VAT has been retrospectively applied to toll revenues and related charges from July 1, 2022, to March 31, 2026.

According to the company, the total VAT liability owed to the FTA amounts to approximately Dh471 million, including penalties for late payments.

However, motorists will not be required to pay any retrospective VAT charges.

The Roads and Transport Authority (RTA) will reimburse the historical VAT liability, ensuring drivers are only affected by the new charges starting from June 2026.

Impact on Daily Commuters in Dubai

For regular commuters, especially those travelling during peak hours through multiple Salik gates, the VAT introduction could gradually increase overall transportation expenses.

Motorists who frequently drive between areas such as:

• Sheikh Zayed Road
• Al Garhoud
• Business Bay
• Al Mamzar
• Jebel Ali

may feel the effect more significantly over time.

The increase also comes as Dubai continues expanding road infrastructure and smart mobility initiatives across the emirate.

Conclusion

Dubai’s decision to apply 5% VAT on Salik toll charges from June 1, 2026, marks another adjustment to the city’s transportation costs. While the increase per crossing remains relatively small, regular commuters are likely to notice higher monthly driving expenses, especially during peak hours.

The good news for motorists is that no retrospective VAT charges will be passed on to drivers, as the RTA will handle earlier tax liabilities owed by Salik to the Federal Tax Authority.