Starting June 1, 2026, motorists in Dubai will see a 5 percent value-added tax (VAT) added to all public parking fees. Parkin, the city's primary parking operator, confirmed that this tax will apply to both on-street and off-street parking facilities. For example, standard parking rates will see modest increases, such as non-peak roadside parking rising from Dh4 to Dh4.20, and multi-storey parking moving from Dh5 to Dh5.25 per hour. The company has reassured the public that all collected VAT will be directly remitted to the Federal Tax Authority, and motorists will not be charged any retrospective fees for the period between early 2024 and mid-2026.

In addition to the tax update, Parkin is moving forward with Dubai’s broader Cashless Strategy. As of June 1, 2026, the company will phase out cash payments at parking meters entirely, shifting users toward digital alternatives. While payment via nol cards will remain an option, Parkin strongly encourages drivers to utilize their official mobile application to ensure a seamless experience and avoid the extra fees associated with SMS parking payments. Motorists are advised to keep an eye on official Parkin channels for further updates as the transition date approaches.