Dubai motorists are set to see a noticeable change in how they pay for parking and toll services from June 1, after both Parkin and Salik confirmed that a 5 per cent Value Added Tax (VAT) will officially apply to several services across the city.

The update means drivers using public parking, toll gates and related services will now pay slightly more as part of the UAE’s tax regulations.

According to Parkin, VAT will apply to on-street and off-street parking, seasonal parking cards, permits and reservation services. Meanwhile, Salik confirmed the same tax will also be added to toll gate charges and Salik tag activation fees starting from the same date.

The companies said the collected VAT will be transferred to the UAE’s Federal Tax Authority in line with existing tax laws.

But the changes do not stop there.

Fully cashless payment

In another major shift, Dubai is also moving one step closer towards becoming a fully cashless city. Parkin confirmed that cash payments at parking meters across Dubai will be phased out from June 1 as part of the emirate’s wider digital transformation strategy.

Drivers will still be able to pay for parking using several digital methods, including:

• The Parkin app
• SMS parking payments
• Dubai Now app
• RTA app
• Nol cards

The move is expected to make parking payments faster and more streamlined, while reducing the need for cash transactions across the city.

For many motorists, the changes may slightly increase day-to-day driving costs, especially for residents who regularly use paid parking zones and Salik gates during daily commutes.

Dubai has increasingly been expanding smart mobility and cashless services in recent years, with digital transport systems, app-based payments and AI-powered parking technology becoming a larger part of the city’s infrastructure.

Parkin has advised customers to follow its official channels for additional updates and guidance as the new system rolls out.

Sharjah Roads and Transport Authority has announced a temporary traffic diversion on Al Khan Road as part of ongoing road expansion and bridge construction works aimed at improving traffic flow across the emirate.

The diversion will take effect from Friday, with authorities urging motorists to follow approved detour routes and traffic instructions during the construction period.

According to the authority, the works are part of wider infrastructure upgrades designed to reduce congestion and enhance connectivity in one of Sharjah’s busiest traffic corridors.

Drivers have been advised to plan journeys, use alternative routes where possible and comply with traffic safety guidelines to help maintain smooth traffic movement in the area.

The project forms part of Sharjah’s broader transport development strategy focused on upgrading road networks and supporting the emirate’s growing population and mobility needs.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum has approved a fresh Dh1.5 billion economic support package aimed at protecting jobs, easing pressure on businesses and strengthening Dubai’s economy during a challenging period for the region.

The latest measures bring the total value of Dubai’s recent economic support initiatives to Dh2.5 billion, following an earlier Dh1 billion package introduced earlier this year.

The new package includes 33 initiatives that will be rolled out over the next three to 12 months, targeting key sectors including tourism, hospitality, trade, education and customs services.

One of the biggest beneficiaries is Dubai’s hotel and tourism industry, with several major fee relief measures announced to reduce operating costs.

Hotels across the emirate will be allowed to postpone 100 per cent of government sales fees on rooms as well as food and beverage services for three months. The relief applies to hotels, hotel apartments and holiday homes.

Dubai has also postponed the Tourism Dirham fee, a charge applied to hotel stays for up to 30 consecutive nights, for the same period. Hotels will additionally be exempt from permit, postponement and cancellation fees related to events.

Retailers and commercial businesses are also expected to benefit, with Dubai removing additional charges linked to sales campaigns and promotional offers. The move is likely to encourage more discounts and shopping promotions across the city over the coming months.

The package further includes streamlined procedures for residency permit issuance and renewals, although detailed implementation guidelines are yet to be announced.

Other sectors receiving support include education, customs, transport and aviation. Measures include deferred licence renewal fees for educational institutions, payment deferrals in the transport sector, an 80 per cent reduction in customs fines and a 50 per cent cut in fees for renewing civil aviation permits.

In a statement shared on X, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum said the initiatives reinforce Dubai’s economic resilience and competitiveness while strengthening partnerships between the government and private sector.

He added that Dubai remains committed to supporting businesses and residents while continuing to position itself as a leading global economic hub.