The Dutch Cabinet on Friday approved a new road tax bill that would eliminate the current motor vehicle tax and purchase tax and replace them with a charge per kilometer driven, starting in 2012 and increasing through 2018. The measure needs to be approved by the Dutch Parliament before becoming law.
The Dutch Ministry of Transport, Public Works and Water Management cited research showing that the number of vehicle kilometers driven will decrease by about 15% under such a mechanism. The Ministry also suggested that motorists seeking alternatives such as public transport will increase by 6%, while traffic fatalities are expected to decrease by about 7%. Emissions of CO2 and particulate matter are expected to decrease by more than 10%.
Different vehicle types will have different base rates, determined by CO2 emissions or weight. The average rate for a car is expected to be:
|Dutch Mileage Tax|
Each vehicle would have a GPS device that records driving data, which would be sent to a collection agency that will issue the bills. The Ministry of Transport, Public Works and Water Management said in a statement that motorists will be able to choose a provider that provides additional services, such as route navigation.
Vehicles for the disabled vehicles, agricultural tractors, motor vehicles with a limited speed, taxis, classic cars and buses would be exempt. An alternative payment system will be devised for foreign vehicles using Dutch roads.
Proceeds from the mileage tax will not exceed the combined cost of the older taxes, which can be about 25% of the cost of a new car. The proceeds will go directly to the Infrastructure Fund, which supports the building of roads, railways and other infrastructure.
The Ministry said that the government sees mobility as a prerequisite for economic growth and as an achievement which gives people the opportunity to develop themselves and relax. Since the sixties, the number of car kilometers has increased tenfold. The government expects mobility to grow by another 40% by 2020.
(A hat-tip to Stefan!)