In a huge relief to UAE residents, the Roads and Transport Authority has clarified that value-added tax (VAT) will not be levied on Salik (toll gates) or public transport facilities.
The statement comes after rumours on social media that VAT, which is set to roll out in the UAE from January 1, will also apply on Salik.
“Passengers and commuters of public transport facilities like the buses, metro, tram and maritime transport, as well as cab passengers, will not be subject to VAT,” the authority said in a statement to Khaleej Times.
“The authority has always endeavoured to provide all means of convenience and comfort to customers, and encourage and incentivize them to use the various means of transport in the emirate,” the statement added.
There are seven Salik gates in Dubai, and a toll of Dh4 is automatically deducted from smart tags every time a vehicle passes under these toll gates.