Foreign car fee good, but where will proceeds go?
Published: Jul 17, 2014 10:26 PM | Updated: Jul 18, 2014 12:53 AM
The decision to charge foreign vehicles entering from Johor a fee for a vehicle entry permit (VEP) is a good idea, DAP says, but what will the money be used for?
The decision to charge foreign vehicles entering from Johor a fee for a vehicle entry permit (VEP) is a good idea, DAP says, but what will the money be used for?
Senai assemblyperson Wong Shu Qi said that at a potential RM180 million annually, given 5,000 vehicles a day, the state government’s share of it will also have to be disclosed.
"We do agree with the new border charge on foreign vehicles if a comprehensive plan to improve our public transport is implemented simultaneously.
"However, no other details were announced about how federal government and state government would share the revenue,” Wong (right) said in a statement.
She said that statements made by the federal government following the announcement indicate that the policy is more of an “eye for an eye” move instead of comprehensive policy.
This is because the government said the decision was done on a bilateral level, as Singapore imposes a charge on Malaysian cars entering the island nation.
“Are we implementing the VEP charge as retaliation or do we need the revenue to improve our local public transportation system?” she asked
She said that as the VEP is meant to reduce congestion, then revenue should be spent on improving public transport in Johor Bahru and improving local economy.
“Otherwise, it defeats the purpose of having the border charge,” she said.
On Wednesday, Prime Minister Najib Abdul Razak announced that all foreign cars entering Malaysia via Johor will be required to have a VEP.
This follows Singapore’s announcement to raise its VEP charge of S$35 (RM89.85) from S$20 (RM51.34) now on foreign vehicles entering the island republic effective Aug 1.
Senai assemblyperson Wong Shu Qi said that at a potential RM180 million annually, given 5,000 vehicles a day, the state government’s share of it will also have to be disclosed.
"We do agree with the new border charge on foreign vehicles if a comprehensive plan to improve our public transport is implemented simultaneously."However, no other details were announced about how federal government and state government would share the revenue,” Wong (right) said in a statement.
She said that statements made by the federal government following the announcement indicate that the policy is more of an “eye for an eye” move instead of comprehensive policy.
This is because the government said the decision was done on a bilateral level, as Singapore imposes a charge on Malaysian cars entering the island nation.
“Are we implementing the VEP charge as retaliation or do we need the revenue to improve our local public transportation system?” she asked
She said that as the VEP is meant to reduce congestion, then revenue should be spent on improving public transport in Johor Bahru and improving local economy.
“Otherwise, it defeats the purpose of having the border charge,” she said.
On Wednesday, Prime Minister Najib Abdul Razak announced that all foreign cars entering Malaysia via Johor will be required to have a VEP.
This follows Singapore’s announcement to raise its VEP charge of S$35 (RM89.85) from S$20 (RM51.34) now on foreign vehicles entering the island republic effective Aug 1.
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