Dutch drivers to pay tax by distance
Dutch drivers are to pay less to buy a car but will be charged tax on every kilometre on the road in a move aimed at reducing traffic jams, fatal accidents and carbon emissions.
The Cabinet approved a Bill yesterday, calling for drivers of an average passenger car to pay a base rate 3c per kilometre from 2012.
Drivers of heavier, more polluting vehicles will pay more, and the cost will go up for driving in peak hours.
GPS will track the time, hour and place each car moves and send the data to a billing agency.
However, the annual road tax and purchase tax for new cars will be abolished, reducing the price of a new car by 25%, the Transport Ministry said.
Nearly six out of 10 drivers will benefit under the system, the ministry said, but government revenue would remain the same. Public transportation, including taxis, will be exempt.
The ministry calculated that overall traffic would drop by about 15%, peak-hour congestion will be halved, traffic deaths will fall 7% and carbon emissions from road travel will be cut by 10%.
The tax will increase every year until 2018 and could be adjusted if it fails to change traffic patterns.
