Levy on foreign vehicles entering Malaysia mulled

The government is studying a plan to impose a levy on foreign registered vehicles entering Malaysia, the Dewan Negara was told.

Deputy Transport Minister Datuk Abdul Aziz Kaprawi said discussions and research regarding the matter were being conducted with relevant stakeholders.

"We are scrutinising the details and capabilities of our system and what we have developed with the relevant agencies," he said in reply to a question by Senator Rohani Abdullah.

Rohani questioned whether the government wanted to impose fees on foreign vehicles entering Malaysia, especially from Singapore, as the country imposes various charges on Malaysian vehicles entering the republic.

Aziz said amendments to the Road Transport Act 1987 provided for the imposition of fees on foreign vehicles entering Malaysia.

"But before we implement anything, studies have to be conducted to ensure the registration system for these foreign vehicles will run smoothly. We also have to look into standard operating procedures and physical space for the vehicles."

Aziz said that impact on the tourism industry also had to be taken into consideration.

Debate about imposing a levy on foreign vehicles had started in 2007, but was scrapped so as not to put off tourists during Visit Malaysia Year 2007.