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KUALA LUMPUR, MALAYSIA: A better deal is in store for express buses where they will enjoy lower toll rates, road tax and insurance premiums.
Certain buses would also be allowed to do away with the fixed fares.
Entrepreneurial and Cooperatives Development Minister Datuk Noh Omar said the move was to help reduce the operational costs of bus operators.
"The Cabinet committee on Public Transportation had on Wednesday decided to ask the relevant ministries to look into lowering toll rates, road tax, insurance premiums and rental of terminal."
"We will also look at having some buses running at fixed fares (economy buses) and some buses running at fares that will be determined by the market (premium buses). This will allow the public to have choices," Noh Omar told reporters at the Parliament lobby.
Noh added that "social routes," that were usually loss-making, would be taken up by government-sponsored bus operators such as Mara and RapidKL.
"The ministry has also proposed to bring back mini-buses in rural areas where small vans could be used instead of large buses," he said.
In an immediate reaction, Pan Malaysian Bus Operators Association president, Datuk Ashfar Ali, said not much could be saved from reducing road tax and insurance and added that not all bus operators rented terminals.
He said the classification of the buses as economy or premium could also lead to abuse by the operators.
"Certain bus operators may charge exorbitant rates but pick up passengers in an economy-rated bus," he said, adding that there should be strict enforcement to ensure this did not occur.
Pan Malaysian Lorry Owners Association (PMLOA) president Er Sui See called for the Government to liberalise the lorry industry as well.
"If they can liberalise the buses, surely they can do the same for the lorries as well," Er told The Star.
He said road tax and toll rates could be reduced, and duties on spare parts and tyres removed, to help transportation operators cope with rising operations cost.
"If we pay less taxes, then the Government can do away with the diesel subsidy," he said.
On the new Public Transport Commission that was announced on Wednesday, Noh declined to comment on how it would be structured or who would head it.
Ashfar said he hoped the new commission would not be headed by the old guard from the Commercial Vehicle Licensing Board or the situation would end up at square one.
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