Dubai travel update: Salik to add 5% VAT on tolls from June 1
Tax applies to gate usage and tag-related charges
DUBAI – Motorists in Dubai will soon notice a change in their toll-related charges after Salik announced that a five percent value-added tax (VAT) will be implemented on toll tariffs and tag activation fees from June 1, 2026.
The announcement introduces a new tax component to services used by millions of motorists across the emirate while leaving the underlying toll structure untouched.
The Dubai-listed company said the VAT amount collected would be remitted to the Federal Tax Authority in line with applicable UAE laws and regulations. Salik also clarified that the measure is a pass-through item collected on behalf of the authority rather than a change to its own pricing model.
VAT changes
According to Salik, the existing tariff framework remains unchanged despite the new tax implementation. Motorists will continue paying existing toll charges, with VAT added on top of those fees and on Salik tag activation charges.
بعد تطبيق ضريبة القيمة المضافة بنسبة 5% على رسوم تعرفة استخدام بوابات سالك ورسوم تفعيل بطاقات التعرفة، تعرفوا على رسوم التعرفة المرنة الجديدة.
— Salik (@Salik_ae) May 22, 2026
Following the application of a 5% Value Added Tax (VAT) on Salik toll usage fees and Salik tag activation fees, check out the new… pic.twitter.com/kltlCRampI
The company stressed that the tax implementation would not affect its financial performance going forward.
It also provided clarity regarding retrospective VAT treatment. Salik said the amount covering the period from July 1, 2022, until May 31, 2026, would be fully compensated by Dubai's Roads and Transport Authority under a previously agreed mechanism.
"As per the previously agreed mechanism," the company noted, there would be no financial impact arising from the earlier period.
Salik profits
The announcement came alongside details of Salik's first-quarter performance for 2026. Net profit remained broadly stable at Dh369.3 million despite a more moderate operating environment during March.
Total revenue for the quarter reached Dh728.9 million, reflecting a 3 per cent year-on-year decline. The company attributed the softer performance to lower traffic trends linked to regional military developments that affected activity during March.
While toll usage declined, other business segments continued to support revenue streams.
Tag activation fees increased by 6.1 per cent to Dh12.2 million during the first quarter. Growth was supported by an 8.4 per cent rise in registered active vehicles.
Traffic trends
Toll usage fees reached Dh625.5 million in the first quarter of 2026, down 6 per cent compared with the same period a year earlier. Salik said softer traffic movement weighed on results, although the impact was partly offset by the variable pricing mechanism introduced in January 2025.
The total number of trips passing through Salik gates, including discounted trips, dropped by 6.4 per cent to 197.2 million.
Fine collections reached Dh69.1 million during the first quarter, up 1 per cent year on year, as March traffic conditions continued to shape performance trends across the network.
The VAT announcement also arrived on the same day Dubai parking operator Parkin confirmed similar tax changes for motorists across parking services beginning June 1.