Parliament has given the nod to a tax on foreign-registered vehicles entering the country despite fears the charge will deter tourists, reports said today.

All motorists entering Malaysia, except for those driving goods vehicles, will soon be liable for the charge, said Deputy Transport Minister Tengku Azlan Abu Bakar.

"The driver, and not the vehicle owner, will have to pay the charges as soon as he enters the country," he was quoted as saying in the Star daily.

Earlier reports said the charge would be RM20 (US$5.50) but Tengku Azlan told Parliament yesterday the levy would be settled once authorities studied traffic flows.

"We have to first study the flow of vehicles at entry points into the country, such as from Singapore into Peninsular Malaysia and from Brunei into Sarawak," he was quoted as saying in the New Straits Times .

Compensate for losses

Malaysia shares a border with Thailand in its north, Singapore to the south, and Brunei on Sarawak state on Borneo island.

The government has justified the fee as part of moves to compensate for losses incurred when Singaporeans and Thais drive over the border to fill up on subsidised petrol.

Authorities and residents in bordering states last month expressed fears the charges will deter tourists and vital cross-border trade, and hit Malaysians who commute to neighbouring states for work and drive foreign-registered cars.

Lawmaker Wee Ka Siong called on the government to impose a monthly fee for foreigners who make frequent trips in and out of the country.

"The fee should not be too high or it might discourage foreigners from entering the country, especially tourists," he said.

The government has yet to announce a date for the introduction of the tax.