Dubai motorists now pay a 5% tax as the Salik VAT rollout takes effect across toll gates and tag activation services from 1 June 2026.
DUBAI: The Salik VAT rollout officially takes effect today, with Dubai motorists now paying a 5% Value Added Tax (VAT) on toll gate usage tariffs and tag activation fees across the emirate.
Salik Company PJSC, Dubai’s exclusive toll gate operator, confirms that the new tax is being implemented from 1 June 2026 in accordance with Federal Law No. (8) of 2017 and its amendments. The company had previously notified investors and stakeholders through a disclosure to the Dubai Financial Market on 15 May.
Under the new arrangement, VAT is added to toll charges and activation fees associated with Salik tags. The amounts collected are being transferred to the Federal Tax Authority (FTA) in line with the applicable regulations governing VAT in the United Arab Emirates.
The move represents an operational change for motorists who regularly use Dubai’s toll road network. While the tax applies to eligible charges, Salik says its commitment to providing efficient and seamless mobility services remains unchanged.
The company states that it continues to focus on improving customer experience through digital innovation and smart mobility solutions. Salik adds that its technology-driven approach is designed to support smoother traffic flow, enhance convenience for road users and contribute to the wider development of Dubai’s transport infrastructure.
The Salik VAT rollout comes as Dubai continues investing in advanced mobility systems aimed at supporting population growth and increasing transport demand. Authorities have consistently highlighted the role of technology and integrated transport solutions in maintaining efficient movement across the city.
Salik says it remains fully committed to complying with all regulatory and legislative requirements in the UAE. The company also notes that it will continue expanding its digital ecosystem and innovative service offerings while supporting Dubai’s vision of becoming a leading global city for smart and sustainable mobility.
