VMT Fee May Replace Car Taxes In Netherlands

Imagine this: Replacing the sales tax on purchasing a new vehicle and annual, 'fixed' fees with a VMT fee based on size, weight, and CO2 emissions of the vehicle. This is the plan of the Dutch government to reduce congestion and greenhouse gases.
November 16, 2009, 11am PST | Irvin Dawid
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Will a new, variable vehicle-miles-traveled fee using GPS that may, in fact be revenue-neutral, reduce congestion and carbon dioxide emissions? The Dutch cabinet thinks it will, but the Parliament hasn't ruled on it yet.

"The Dutch government said Friday it wants to introduce a "green" road tax by the kilometre from 2012 aimed at cutting carbon dioxide emissions by 10 percent and halving congestion.

"Each vehicle will be equipped with a GPS device that tracks how many kilometres are driven and when and where. This data will be then be sent to a collection agency that will send out the bill," the transport ministry said in a statement.

Ownership and sales taxes, about a quarter of the cost of a new car, will be scrapped and replaced by the "price per kilometre" system aimed at cutting the Netherlands' carbon dioxide emissions by 10 percent."

Thanks to Ed Braddy

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Published on Friday, November 13, 2009 in Breitbart.com
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