VEP Charge For Singapore Vehicles

Thi is the printed version in the New Straits Times today.

Prime Minister Datuk Seri Najib Razak (second from left) at the launch of the ‘Bas Bandaraya’ in Johor Baru yesterday. With him are Deputy Prime Minister Tan Sri Muhyiddin Yassin (second from right), Johor Menteri Besar Datuk Seri Mohamed Khaled Nordin (right) and Johor Baru Mayor Abdul Rahman Dewam. Pic by Roslan Khamis

by Ben Tan and Chuah Bee Kim

JOHOR BARU: All Singapore-registered vehicles entering Johor will soon be subjected to a Vehicle Entry Permit (VEP) charge.

Prime Minister Datuk Seri Najib Razak yesterday said the government agreed to the implementation of the VEP following a request from the Johor government.

“However, the VEP needs some fine tuning before its implementation.

The Johor government also needs to inform the Road Transport Department of its implementation as part of the administrative process,” he said in a speech before a breaking of fast event at the Persada Johor International Convention Centre here yesterday.

Najib said the Federal Government and Johor would also discuss proposed rates for the VEP.

“A portion of the VEP collection will go to the state government.”

Among the 1,500 guests at the event were Deputy Prime Minister Tan Sri Muhyiddin Yassin and Johor Menteri Besar Datuk Seri Mohamed Khaled Nordin.

When the VEP would be implemented and the fee structure would be determined soon, said Najib.

“Muhyiddin agreed with me on this and I have informed Datuk Seri Abdul Wahid Omar (minister in the Prime Minister’s Department) via telephone just now on the agreement to implement the VEP.”

The Johor government has been awaiting the Federal Government’s go-ahead to implement the VEP for Singapore-registered vehicles entering both the Causeway in the city and the Second Link in Gelang Patah. The VEP was proposed in 2006 and 2010 as a means to curb losses incurred as a result of foreign vehicle owners buying subsidised petrol and diesel.

During a Johor Umno liaison meeting on July 5, Khaled had said the proposal for the implementation of the VEP in the state had been submitted to the Federal Government five months ago.

At that time, he said, the Johor government had proposed a RM20 levy on Singapore-registered cars, with RM5 to be channelled back to the state for road maintenance.

At the same time, the Singaporean authorities had announced a hike in the republic’s VEP for foreign cars from S$20 (RM51.40) to S$35 per day beginning Aug 1. The Singapore Land Transport Authority also said the Goods Vehicle Permit for lorries would be increased from S$10 to S$40 per month.

Earlier, Najib attended a closed-door briefing on Johor’s development and progress here by Johor state planning unit (Unpen) director A. Rahim Nin.