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Salik Announces 5% VAT on Dubai Toll Tariffs From June 1

Dubai's sole toll gate operator Salik will implement a five percent Value Added Tax starting June 1, 2026. This tax applies directly to all toll tariffs and tag activation fees.

The company acts strictly as a pass-through collector for the Federal Tax Authority. Salik confirmed that the VAT addition will not impact its overall profitability or financial position.

How Much More Will Motorists Pay?

Motorists will pay an additional 30 fils during peak hours and 20 fils during off-peak times. The toll rate will rise from six dirhams to 6.30 dirhams for peak travel. Off-peak rates will increase from four dirhams to 4.20 dirhams per transit.

The standard Salik gate pass remains free between 1 AM and 6 AM daily.

No Retrospective Costs for Drivers

Salik settled past tax obligations spanning July 2022 to May 2026. The Roads and Transport Authority of Dubai will fully reimburse this retrospective amount of 471 million dirhams.

Therefore, motorists will not pay any retrospective taxes for previous toll usage.

Stable Q1 Financial Performance

Salik reported stable net profits of 369.3 million dirhams for the first quarter of 2026. However, total revenue decreased by three percent due to softer traffic trends amid the regional military conflict.

Tag activation fees rose six percent to reach 12.2 million dirhams. This increase supports a strong eight percent growth in registered active vehicles across the city.


To calculate your monthly road expenses and see the latest transit updates, make sure to visit The WAU homepage today.


Author: Amita Kalsi   

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