Parkin proposes parking changes; Salik to add 5% VAT on tolls from June 1

May 22, 2026 at 2:32 PM

Dubai parking operator Parkin has proposed revisions to parking tariffs and seasonal card structures that could raise the city’s average parking fees, according to a statement disclosed on the Dubai Financial Market.

The company said it submitted the proposal to the Roads and Transport Authority (RTA) in mid-February 2026, seeking adjustments aimed at reducing price differences and aligning tariffs with the variable pricing system introduced earlier this year. It added that the changes would retain existing discount structures to ensure long-term balance for customers, Parkin, and the RTA.

Parkin confirmed the RTA has received the proposal and will review it before seeking approval from Dubai’s Executive Council. If approved, the changes would increase the weighted average public parking tariff.

Parking costs in Dubai have already risen sharply, with Khaleej Times reporting a 51% increase in average hourly fees in Q3 2025 compared to a year earlier, reaching Dh3.03 per hour after the introduction of variable pricing in April.

Looking ahead, Parkin expects to expand its public parking capacity by 5,500 to 7,500 spaces in 2026, with revenue from the segment projected between Dh560 million and Dh610 million, up from Dh524.5 million in 2025. The company reported a 48% rise in net profit to Dh625.5 million for 2025.

Separately, Dubai toll operator Salik announced it will introduce a 5% value-added tax (VAT) on toll charges and tag activation fees from June 1, 2026. The company said the VAT will be passed on to the Federal Tax Authority and will not affect its profitability, adding that the underlying tariff structure remains unchanged.

Salik also said the retrospective VAT from July 1, 2022 to May 31, 2026 will be fully compensated by the RTA, ensuring no financial impact for the company.