Holland introduces draft road charging law

Mon 16 November 2009 View all news

A plan introduced by the Dutch Government will lead to the scrapping of vehicle registration and road taxes from 2012 and replace them with a per kilometre charge. The Government says that most motorists will end up paying less if the plans are introduced. The legislative proposal has been sent to the Dutch Parliament after nearly two years of debate.

Under the proposals, a basic tax of €0.03 a km would vary with vehicle type, weight and CO2 emissions from 2012 and rise to €0.067 a km by 2018. Each vehicle will be required to have a GPS system to check time, distance travelled and speed, sending data to a collection facility for processing and the issuing of invoices. The Dutch Government says that the money generated will be used to fund other transport projects.

Research released to accompany the announcement suggests the plan may cut travel by 15%, reduce CO2 and particulate emissions, improve safety and deliver €1bn a year in welfare gains.



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