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.
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
FULL STORY: Netherlands to levy 'green' road tax by the kilometre
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