There is a 5 per cent value-added tax (VAT) when you buy a Salik (toll gates) recharge card or tag from a petrol station or supermarket but no extra charge when you recharge your Salik account online or via the RTA website.

There is no VAT on Salik charge – it is still Dh4 deduction from smart tags every time a vehicle passes under these toll gates.

Last month, the Roads and Transport Authority (RTA) has clarified that VAT will not be levied on Salik or public transport facilities, after rumours on social media that VAT 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.

This is an excerpt from a Khaleej Times article and which you can read here.