Dubai’s Parkin announces 5% VAT to all parking services starting June 1

Dubai’s largest parking operator Parkin announced that a VAT of 5 per cent will be applied to all parking services provided by the operator starting June 1.

This includes on-street and off-street parking, seasonal cards, permits, and reservations. The operator noted that the move, announced on Friday (May 22), was in coordination with relevant government authorities and applicable UAE tax regulations.

To support a well-managed transition, customers are encouraged to refer to Parkin’s official communication channels for up-to-date information.

On February 25 of this year, media reported that parking fees in Dubai might increase as Parkin submitted a request to Roads and Transport Authority (RTA) for adjustments to the parking tariff and seasonal card structure.

“In mid February 2026, the company made a formal submission to the Roads & Transport Authority (RTA), requesting various adjustments that, if approved, would increase the weighted average public parking tariff. Among these are proposed changes to the seasonal card structure and tariffs, designed to reduce existing price arbitrage and better align with the variable pricing introduced earlier this year,” it said in a press statement posted on the Dubai Financial Market, where it is listed.

“The proposals would also preserve the existing discount framework to promote long term fairness for customers, Parkin, and the RTA,” it added.

As reported by media earlier, the average hourly cost of paid parking in Dubai increased by 51 per cent in the third quarter of 2025 as compared to the same period last year. The weighted average hourly tariff increased to Dh3.03 per hour in July–September 2025 — up from Dh2.01, after the introduction of the variable parking tariff in April.The Dubai-listed company said if approved, this would increase the weighted-average public parking tariff.

Parkin said on February 25 that the “RTA has confirmed receipt of our proposal and will undertake a detailed review before approaching the Executive Council of Dubai for guidance and final approval.”

While sharing its outlook for 2026, Parkin anticipates expanding the public parking portfolio by approximately 5,500 to 7,500 spaces this year. It is projected that the public parking segment will generate revenue of between Dh560 million and Dh610 million, up from Dh524.5 million in 2025.

The company reported net profit of Dh625.5 million for 2025, up 48 per cent.

Salik announces 5% VAT

Dubai’s sole toll gate operator Salik also announced that it will implement a five per cent value-added tax (VAT) on toll tariffs and tag activation fee.

“The VAT amount will be remitted to the Federal Tax Authority (FTA) in accordance with the applicable laws and regulations in the UAE,” Salik said.

The Dubai-listed company confirmed that the underlying tariff structure remains unchanged, and that VAT represents a pass-through item collected on behalf of the FTA.

It added that the implementation of VAT from June 1, 2026 will not have any impact on the company’s profitability or overall financial position on a go-forward basis.

“As per the previously agreed mechanism, the company confirms that the Retrospective VAT amount, for the period of July 1, 2022 till May 31, 2026, will be fully compensated by RTA resulting in no financial impact to Salik for this period. Salik will continue to maintain the highest standards of regulatory compliance, transparency, and disclosure, and will provide further updates to the market if required in accordance with applicable regulatory requirements,” it said in a statement on Friday.

(With inputs from Waheed Abbas).