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2009/11/20

The Netherlands launch a mileage tax

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As from 2012, the Dutch government will be taxing motorists in an endeavour to limit CO2 emission, traffic jams and the number of accidents.


Dutch motorists will, as from 2012, be obliged to pay a mileage tax, it was announced on Saturday 14th November 2009. Via this measure, the government is looking to reduce the greenhouse effect by limiting CO2 emission. It should also discourage motorists from unnecessarily using their cars, hence reducing traffic and the number of fatal road accidents.

The tax will be calculated on a basis of 3 Euro cents per kilometre in 2012. It will be progressively increased up to 2018 and will be subject to surcharge depending on specific criteria: power, quantity of CO2 produced and travelling times. Taxis and buses will not be subject to the new tax.

The government hopes to equip each car with a GPS in order to record mileage, the vehicle's location and at what time of day. Data will be forwarded to a collection office, in charge of sending invoices to motorists. In return, vehicle purchase taxes, representing 25% of the cost of a new vehicle, will be abolished.

The government is counting on an overall traffic reduction of 15% and a 10% reduction in CO2 emission. "Traffic jams will be halved, which is a good move for the environment," believes the transport ministry, going on to highlight, "the cleaner and the more conscientiously we drive, the less we will have to pay." "The number of deaths due to road accidents should also be reduced by 7%," adds the ministry which is expecting a simultaneous increase of 6% in public transport use.
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