Government

Motorists using Dubai’s Salik toll system will begin paying a 5 per cent Value Added Tax (VAT) on toll gate crossings starting June 1, 2026, following an announcement by Salik Company.

The introduction of VAT will result in a slight increase in toll charges across all 10 Salik gates in Dubai. The move aligns with UAE tax regulations and will see motorists pay VAT in addition to the existing toll tariffs.

Under the revised structure, the toll fee during peak hours — from 6am to 10am and 4pm to 8pm — will increase from Dh6 to Dh6.30 per crossing. During off-peak hours, from 10am to 4pm and 8pm to 1am, the toll charge will rise from Dh4 to Dh4.20. No toll charges apply between 1am and 6am.

For regular commuters, the change will result in a modest increase in monthly travel expenses. A motorist crossing two toll gates each way during peak hours would incur four daily crossings, amounting to Dh25.20 per day under the new rates. Over a standard 21-working-day month, this totals Dh529.20, compared to Dh504 previously — an increase of Dh25.20 per month.

Salik confirmed that VAT will apply not only to toll gate usage but also to tag activation fees. The company further clarified that all VAT collected from motorists will be remitted directly to the Federal Tax Authority (FTA) in accordance with UAE tax laws.

The company also addressed the issue of retrospective VAT liabilities. Earlier this month, Salik disclosed that VAT had been applied retrospectively to toll revenues and related charges generated between July 1, 2022, and March 31, 2026. The resulting VAT liability, including associated penalties, amounts to approximately Dh471 million.

However, motorists will not be required to pay any retrospective VAT charges. Salik stated that the Roads and Transport Authority (RTA) will reimburse the outstanding VAT obligations owed to the FTA, ensuring that road users are only affected by the new VAT charges from June 1 onward.

The implementation marks a significant update to Dubai’s toll system and is expected to have a minor but recurring impact on daily commuting costs for thousands of motorists across the emirate.

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