Dubai Motorists Brace For Higher Monthly Driving Bills As VAT On Salik, Parking Kicks In

From taking alternative routes to postponing plans for a third car, Dubai residents say they are becoming more conscious of transport spending as VAT on Salik tolls and public parking fees came into effect on June 1, alongside higher fuel prices this month.

The new charges mean motorists now pay 5 per cent VAT on Salik tolls, parking fees and related services. Salik users now pay Dh4.20 instead of Dh4 during off-peak hours and Dh6.30 instead of Dh6 during peak periods, while public parking charges are also subject to VAT.

For some residents, the impact is minimal. For others, particularly families and long-distance commuters, the additional costs are another expense to factor into household budgets.

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Noor Hamam, a Dubai-born wellness and Pilates instructor from Lebanon, said transportation costs are already a significant expense because her work takes her across different parts of the city.

Although she does not own a car, Hamam regularly uses taxis and occasionally borrows or rents a vehicle when travelling between fitness studios in Sports City and Majan.

To reduce costs, Hamam tries to schedule classes back-to-back rather than making multiple trips throughout the day. "I always prefer to make my classes back-to-back. I don't want to go and come back and then go again.” She estimated that her transportation expenses could increase by around 20 per cent.

"I was considering buying my own car, but I just found out yesterday that residential parking in the community where I live is now paid,” said Hamam. "It's residential parking inside a gated community. There aren't any commercial outlets there, so I was surprised to learn the parking would be paid."

"It will affect me when I rent a car occasionally, but if I owned a car and had to pay for parking every day, it would be completely unfeasible,” she added.

For Maroun Farah, a PR consultant who has lived in Dubai since 2004, the latest VAT changes come on top of rising toll costs associated with his regular commute to Abu Dhabi.

Farah and his wife both work in the capital and live in Dubai. He said his Abu Dhabi Darb toll bill reached Dh144 last month despite a 10-day holiday break.

With the addition of the Ghantoot toll gate and a full month of commuting ahead, he expects that figure to rise to around Dh200 in June.

"When fuel, Salik and toll charges are combined, we are now spending around Dh2,200 a month compared to roughly Dh1,500 before.”

To reduce costs, the family has increasingly relied on their smaller four-cylinder vehicle instead of their larger six-cylinder SUV.

"We became more sustainable. We use the smaller car more because my car is big.”

Farah said rising transport and parking costs have also influenced longer-term decisions.

"I was thinking of getting a sports car for weekends - a Porsche to share with my wife, but because parking became paid in many communities, we postponed the idea.”

However, he believes the burden will be far greater on lower-income residents.

Nonetheless, not everyone seems to be concerned about the increase. Georges JeaJea, who has lived in Dubai for 29 years, said he spends about Dh150 a month on Salik, parking and toll charges combined and expects the VAT to add only a small amount to his monthly expenses. "I don't think it is a big amount," he said. "Compared to the services Dubai provides, the roads, cleanliness and traffic improvements, the increase is reasonable."

JeaJea said fuel costs have had a greater impact on his budget than tolls because they are influenced by global oil prices. "My fuel bill used to be around Dh120 for Abu Dhabi trips. Now it is closer to Dh180 or Dh200.” Still, he has no plans to change his driving habits. "You have mandatory trips. You need to go to work and come back. These costs are part of life," he explained.

Basem Salah, an Egyptian resident who has lived in Dubai for 17 years, said he already tries to avoid toll roads whenever possible. "Sometimes I avoid Salik, but then you end up paying more on petrol.”

Salah typically spends around Dh50 a week on Salik and Darb charges and estimates his monthly transport costs could rise by about Dh100 once fuel, toll and parking increases are taken into account. He said larger families are likely to feel the impact more than single residents. "Families will definitely be affected more. Many have children in university who drive their own cars, so all these costs add up," he noted.

While residents differed on the significance of the increases, most agreed they are paying closer attention to transportation spending.

Salik VAT rule in Dubai: New cost per toll gate crossing for UAE motorists Price changes in June: UAE residents to pay more for fuel, Salik, parking Salik announces 5% VAT from June 1 on toll tariff, tag activation fees

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