Putrajaya today announced it would to implement the Vehicle Entry Permit Fee for all foreign vehicles entering Johor, the Star online reported.
It quoted Prime Minister Datuk Seri Najib Razak as saying the decision had been made following a request from Johor.
"I have discussed the matter with Deputy Prime Minister Tan Sri Muhyiddin Yassin," Najib was quoted as saying.
He added that Minister in the Prime Minister's Department Datuk Seri Abdul Wahid Omar had also been informed.
"I have instructed Wahid to inform the Road Transport Department so that they can thrash out the details before VEP is implemented."
Najib spoke to the press today after attending a buka puasa event organised in Johor.
"We will make an announcement later on the implementation date and rates for the VEP," Najib was quoted as saying.
He gave an assurance that a portion of the VEP collection would be channelled to the Johor government.
Putrajaya’s move comes after Singapore recently announced that effective August 1, the Vehicle Entry Permit (VEP) fee for foreign-registered cars entering Singapore will be raised from S$20 (RM52) to S$35 (RM90) a day.
The Goods Vehicle Permit (GVP) fee for foreign-registered goods vehicles will be raised from S$10 (RM26) to S$40 (RM103) a month.
Malaysian businesses have protested against the move since it would drive cost higher, especially with the strong Singapore dollar.
Unhappy with the Singapore decision, Umno Youth chief Khairy Jamaluddin had said Putrajaya should also start charging Singaporeans.
News reports had quoted Khairy as saying Singaporeans had enjoyed a free entry into Malaysia despite their stronger currency.
He said the Youth wing supported a suggestion by its Johor chapter to charge Singapore motorists fees since they have increased their entrance fees.
The island republic is among the biggest investors in the Iskandar Development Region and investment from Singapore has been pegged being worth more than S$10 billion (RM25.3 billion).
- TMI
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