Dubai motorists will face slightly higher toll costs from June 1, 2026, as Salik VAT on toll charges Dubai comes into effect with the introduction of a 5% Value Added Tax (VAT) on toll crossings and tag activation fees. The move, announced by Salik, the emirate’s exclusive toll gate operator, will apply across its toll network and add to the existing dynamic pricing system introduced in 2025.
Salik, the exclusive toll gate operator in Dubai, confirmed that it will begin applying VAT at a rate of 5% in line with the implementation of Federal Law No. (8) of 2017 and its amendments.
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According to the company’s official statement, the VAT collected from motorists will be transferred to the Federal Tax Authority in accordance with UAE regulations.
VAT to Apply on Toll Crossings and Tag Activation Fees
Salik said the 5% VAT will come into effect from June 1, 2026, covering both toll gate usage tariffs and Salik tag activation charges.
The company noted that the move follows its earlier disclosure made on May 15, 2026, on the Dubai Financial Market (DFM). It added that the collected VAT amounts will be remitted to the UAE’s tax authorities as required under applicable laws.
Salik also reiterated its commitment to complying with the UAE’s regulatory framework while continuing to provide smart mobility services aimed at improving traffic flow and enhancing the customer experience across Dubai.
Dynamic Toll Pricing Introduced in Dubai
Salik introduced its variable toll pricing system on January 31, 2025, marking the biggest change to Dubai’s toll structure since the system was launched in 2007.
Previously, motorists paid a flat fee of AED 4 per crossing regardless of traffic conditions or time of day. Under the new model, toll charges vary during peak and off-peak periods to help reduce congestion and manage traffic demand more efficiently.
Key details of the dynamic pricing system:
- Peak-hour toll: AED 6
- Off-peak toll: AED 4
- Free hours: 1:00 AM to 6:00 AM daily
- Peak timings (Monday–Saturday): 6:00 AM–10:00 AM and 4:00 PM–8:00 PM
- Off-peak timings (Monday–Saturday): 10:00 AM–4:00 PM and 8:00 PM–1:00 AM
- Sundays: AED 4 throughout the day, excluding public holidays and special events
- No daily cap: Each toll crossing is charged separately
- One-hour exemption: Applies between Al Safa and Al Mamzar gates when travelling in the same direction within one hour
Salik Focuses on Smart Mobility and Traffic Solutions
In recent statements, Salik said it is continuing to expand its digital ecosystem and introduce innovative mobility services aligned with Dubai’s smart city goals.
The company said these efforts are designed to improve customer services, support sustainable transport initiatives, and strengthen Dubai’s position as a leader in integrated traffic and mobility solutions.
