In an effort to cut carbon emissions, The Netherlands is implementing a scheme that will tax vehicles by the kilometer. Officials believe that this new tax, set to go into effect in 2012, will reduce traffic conditions in half. The Dutch cabinet approved the bill, but it needs the backing of Parliament before it can become a law.
“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.
By forcing people to have GPS devices in their cars, the government must be ready to deal with the fraud that will come with it. The devices will be tampered with as there will be people that do not want this new tracking system.
The simplest answer is to raise the tax on gasoline. It, in effect, does the same thing, taxing mileage, without the use of a complicates GPS system or the tracking of individuals in their cars.
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.
Every vehicle type will have a base rate, which depends on its size, weight and carbon dioxide emissions.
Taxis, vehicles for the disabled, buses, motorcycles and classic cars will all be exempt.
“An alternative payment will be introduced for foreign vehicles,” the ministry statement added.
While the ownership and sales taxes will help those who only drive occasionally, not exempting vehicles for business is a bad idea. That delivery company is now going to pass their tax onto you. Now, you’re not only paying your tax for peak times, you’re paying for other companies too.
Dutch motorists driving a standard family saloon will be charged 3 euro cents per kilometre (seven US cents per mile) in 2012. That would increase to 6.7 cents (16 US cents per mile) in 2018, according to the proposed law.
If you want to cut down on rush hour traffic, then introduce a system that rewards drivers, not one that punishes them. Taxing people more is only going to anger them. Offer discounts if they travel by train or bus. Creating a tax that penalizes people because they have to go to work is illogical. Taxing everyone taxes unfairly. The Dutch need to find a way to implement a road tax that is fair and does not track people. Until then, they are only leading the charge to ubiquitous tracking.