RTA clarifies: No VAT on Salik cards or Salik charges

RTA clarified to Gulf News that there will not be any VAT charges on Salik - be it cards or tags purchased online or offline, or on Salik charges while driving in the country.

There were multiple reports of consumers allegedly being charged VAT on Salik cards or tags purchased from stores. 

Salik, along with many other government services and charges including parking fines and the metro, is outside the purview of VAT.

Other VAT questions answered - Vat's up Babu

Will my petrol be taxed?

Yes, the prices announced for January include VAT

Will VAT apply on rents also and parking in the building?

No, VAT is not applicable on residential rents. If the parking fee is charged separately, you have to pay VAT.

Will metro, tram and bus fares be higher for each trip with VAT?

No

Will getting a driver’s licence (including classes and tests) cost more once VAT comes into force?

Yes

- Babu Das Augustine, Banking Editor, Gulf News

Have any other VAT related questions? Ask Babu by emailing us now