Dutch Government To Introduce New Road Tax System

by Philip Morton, Investors Offshore.com

03 December 2007

Holland's Transport Minister, Camiel Eurlings, has announced that the Dutch government plans to implement a new pay-as-you-drive road tax scheme, which will come into full nationwide effect in 2016.

This new scheme, which will use satellite tracking to calculate the mileage of each vehicle, is being put in place to try to reduce the heavy flow of traffic on the roads. Implementation will begin as early as next year, according to reports, but may take up to three years to become active, and will replace current road taxes.

According to an Associated Press report, Mr Eulings explained last week that:

"We want to start with trucks in 2011 and with cars a year later."

He reportedly went on to add:

"The great thing about this decision is that the average driver is not going to pay any more. The standard road tax disappears and will be replaced by a tax per kilometer. That means if you drive a lot you pay more and if you drive less and outside the rush hours then very quickly you'll pay less."

Opposition politicians have slammed the changes, arguing that they will only add to the - already high - financial burden on road users.

However, the move has generally received support from the wider community. NIS News reported that employers organisation VNO-NCW chairman Bernard Wientjes has welcomed the decision, stating that:

"Via experiments with 'peak-avoiding,' experience can be built up in a fair and effective manner for the future technique of kilometre pricing."

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