The major parking operator in Dubai, Parkin, announced that starting from June 1, 2026, a five percent value-added tax (VAT) will be added to all of the company's parking services.

This tax includes street and off-street parking, seasonal cards, permits, and reservations. Parkin stated that this decision was made in coordination with the relevant government authorities and in accordance with the tax laws of the UAE.

The company has asked customers to follow Parkin's official announcements for details and the latest updates.

Earlier, on February 25 of this year, the Gulf Times reported that there is a possibility of an increase in parking fees in Dubai; as Parkin had submitted a request for changes to parking tariffs and the structure of seasonal cards to the Dubai Roads and Transport Authority (RTA).

Parkin announced in a statement released in the Dubai financial market:

“In mid-February 2026, the company officially submitted a request for various amendments to the Dubai Roads and Transport Authority, which, if approved, will increase the average public parking tariff.”

These proposals include changes to the structure and pricing of seasonal cards to reduce the existing price discrepancy and align more closely with the variable pricing system that was implemented earlier this year.

According to previous reports, the average hourly cost of paid parking in Dubai increased by 51 percent in the third quarter of 2025 compared to the same period last year. The average hourly rate rose from 2.01 AED to 3.03 AED; an increase that occurred after the implementation of variable parking pricing in April.

Parkin has also forecasted that approximately 5,500 to 7,500 new parking spaces will be added to Dubai's public parking facilities in 2026. The company expects public parking revenue to reach between 560 to 610 million AED; while this figure was about 524.5 million AED in 2025.

The company also announced that its net profit in 2025 increased by 48 percent to 625.5 million AED.

Meanwhile, Salik, the exclusive road toll operator in Dubai, also announced that starting from June 1, 2026, a five percent value-added tax will be applied to road tolls and the cost of activating tags.

Salik emphasized that the main tariff structure has not changed and the tax is merely an amount collected on behalf of the Federal Tax Authority of the UAE (FTA).

The company also stated that the implementation of VAT will not affect its profitability or financial status, and the tax costs related to the previous period (from July 1, 2022, to May 31, 2026) will be compensated by the Dubai Roads and Transport Authority.
Source: Gulf Times