The Federal Tax Authority (FTA) has launched a new initiative that expands the range of expenses eligible for value-added tax (VAT) refunds for UAE nationals building new homes, in a move aimed at supporting families and reducing construction costs.

The initiative comes in line with the UAE leadership’s directives and coincides with the Year of Family, reinforcing efforts to support home ownership and family wellbeing.

According to the FTA, the expanded list of eligible expenses is expected to generate around AED 200 million in VAT savings for Emirati citizens, with the average refund estimated at about AED 25,000 per claim.

The authority said the total value of approved refund claims is expected to exceed AED 1 billion in 2026, compared to around AED 754 million recorded in 2025.

More construction costs covered

The FTA explained that the initiative is now active and applies to all VAT refund applications submitted on or after January 1, 2026, provided all requirements are met.

Under the updated rules, UAE nationals can now claim VAT refunds on a wider range of construction-related expenses that form part of the residence and are intended for personal or family use.

Newly eligible items include staff accommodation for watchmen, drivers and domestic workers, home gyms, game rooms, integrated smart home systems and security systems, as well as electronic and smart doors for homes and garages.

The expanded list also covers swimming pools, fountains, decorative indoor water features, landscaping works and complete home reconstruction projects, including demolition and rebuilding costs.

The FTA said these features must be part of the residential property, built on the same plot of land and directly connected to the main residence in order to qualify for a refund.

Awareness campaign planned

The authority said it will organise awareness sessions across the UAE to help citizens understand the new initiative and how to benefit from it.

These sessions will be held at local district councils and will also provide an opportunity for residents to share feedback and suggestions on FTA services.

Abdulaziz Al Mulla, Director-General of the FTA, said the initiative reflects the UAE leadership’s commitment to supporting citizens and providing services that improve their quality of life.

He added that the expanded refund programme aims to make the process more transparent and easier for UAE nationals constructing new homes.

The FTA also confirmed that its digital VAT refund platform has been updated to include the newly approved categories, making it easier for applicants to identify eligible expenses and submit their claims.

Officials said the initiative is expected to provide meaningful financial support to families while encouraging home ownership and helping reduce the overall cost of building a new residence.

GN

UAE motorists are entering June with a clearer picture of what to expect on the roads as new fuel prices, updated parking charges and Salik fees come into effect. While some driving costs are set to rise, Dubai is also advancing its smart mobility agenda with fully cashless parking payments, making it easier for motorists to manage their journeys through digital channels.

With petrol prices rising for a fourth consecutive month and new VAT charges kicking in from June 1, here is a guide to what motorists can expect and how much more they may end up paying.

Fuel prices rise again in June

Petrol prices have increased steadily since March, and June brings another hike.

New fuel prices for June 2026 are:

• • Super 98: Dh3.95 per litre (up from Dh3.66 in May)
• • Special 95: Dh3.83 per litre (up from Dh3.55)
• • E-Plus 91: Dh3.76 per litre (up from Dh3.48)

Diesel prices have offered some relief, easing to Dh4.33 per litre from Dh4.69 the previous month, providing a slight offset amid broader fuel and transport cost changes.

While the increase is smaller than the sharp jump seen during the Iran conflict, motorists will still pay more at the pump. Petrol prices are now almost 50 per cent higher than in February, when Super 98 cost Dh2.45 per litre. 

Dubai parking charges to increase

From June 1, Parkin will apply a 5 per cent VAT to all parking services in line with UAE tax regulations.

The tax will apply to:

• On-street parking
• Off-street parking
• Seasonal parking cards
• Parking permits
• Reservations

The underlying parking tariffs remain unchanged, but VAT will be added to the final amount paid by motorists.

How much will parking cost now?

Premium parking during peak hours:

• Current: Dh6 per hour
• New: Dh6.30 per hour

Standard parking:

• Current: Dh4 per hour
• New: Dh4.20 per hour

Lower-tariff zones:

• Dh3 becomes Dh3.15
• Dh2 becomes Dh2.10

Peak parking hours remain:

• 6am to 10am
• 4pm to 8pm

What remains free?

Motorists will still enjoy free parking between 1am and 6am.

In most public parking zones, Sundays and public holidays remain free unless otherwise indicated.

Salik toll fees also rise

VAT will now apply to all Salik toll crossings and tag activation charges.

New Salik charges:

Peak hours:

• Current: Dh6
• New: Dh6.30

Off-peak hours:

• Current: Dh4
• New: Dh4.20

Sunday crossings:

• Current: Dh4
• New: Dh4.20

Late-night crossings between 1am and 6am remain free.

Salik tag activation becomes more expensive

The Salik tag activation fee rises from Dh50 to Dh52.50 after VAT.

Drivers purchasing new tags should expect a slightly higher overall cost, depending on how VAT is applied to eligible service charges.

Dubai goes cashless for parking payments

Another major change arrives on June 1 as Dubai phases out cash payments at parking meters.

Motorists will no longer be able to pay using coins or paper notes at physical parking machines.

Parking can instead be paid through:

• 
  nol cards
• Parkin app
• SMS parking service
• Dubai Now app
• RTA app

What changes for motorists

From June 1, UAE motorists will pay more for fuel, parking and tolls, while cash parking payments become a thing of the past in Dubai.

For occasional drivers, the increases may only add a few dirhams each month. However, daily commuters who regularly use Salik gates, premium parking zones and petrol-powered vehicles are likely to feel the impact more significantly as transport costs continue to climb.

GN

UAE State Security authorities announced they have dismantled a terrorist cell and arrested its members over alleged involvement in covert activities aimed at undermining national unity and destabilising the country.

According to the statement carried by Emirates News Agency (WAM), investigations revealed that the group had planned to carry out organised terrorist and sabotage operations on state territory. Authorities said the network was linked to Iran’s “Wilayat Al Faqih”.

Investigations also found that members of the group had adopted extremist ideologies that pose a threat to internal security. They were said to have conducted recruitment and mobilisation activities through secret meetings, as part of a coordinated plan with external entities to gain access to sensitive sites.

Further monitoring and inquiries indicated that members held clandestine meetings both inside and outside the country with suspected terrorist elements and organisations, seeking to spread misleading ideas among Emirati youth and recruit them in support of external loyalties. 

The activities also included attempts to incite against the state’s foreign policy and internal measures, as well as efforts to portray the country negatively.

Authorities added that the group had collected funds through unofficial means and transferred them to suspicious entities abroad.

The charges brought against those arrested include establishing and operating a secret organisation within the country, pledging allegiance to external entities, and harming national unity and social stability.

State Security reaffirmed its commitment to confronting any threats to public safety, urging citizens and residents to report suspicious activities through official channels to support security and stability.

WAM