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Nov 18, 2009

TAX POLICY * The Netherlands - Set to impose pay per mile

Amsterdam,The Netherland -The Green Car Website (UK) -17 Nov 2009: -- The Dutch government is set to be the first in Europe to replace annual road tax with a pay per mile system for motorists... The polluter pays approach to motoring taxation could help provide an incentive to drivers to cover fewer miles while ensuring a fairer reflection on car use... Proposals set before the Netherland’s cabinet on Friday would see a charge of 3 cents for every kilometre travelled introduced. The tax would be dependant on the installation of a GPS monitoring system and could prove a test case for other European countries to follow suit... The Dutch Ministry of Transport expects that the charge, to be introduced in 2012, will halve the number of traffic jams as well as reduce greenhouse gas emissions... Road tax and purchase tax on cars will be abolished, leading to a reduction in the cost of purchasing a new car by around 25 per cent... The cost per kilometre will depend on the size of the vehicle, initially cars will pay 3 cents, while trucks and vans will pay slightly more. Each year the base tariff will rise until 2018... (Photo from kleyn.com: Kleyn Trucks B.V.)

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