25 November 2009

Pay per Drive in Holland

Driving Cars Kills Your Street Cred

In an effort to reduce automobile usage and greenhouse gas emissions, the Dutch cabinet has approved a driving tax that would charge motorists three cents per kilometre, [0.07 US cents per mile]with higher charges levied during rush hour and for traveling on congested roads. Trucks, commercial vehicles and bigger cars emitting more carbon dioxide will be assessed at a higher rate.

The plan, which must still be approved by parliament, would use GPS systems installed in each car to keep track of mileage and automatically bill drivers.

Dutch officials said the driving tax, which would replace existing road taxes and duties on new car purchases, is designed to cut traffic by 15 percent and reduce emissions from transport by 10 percent.

Other European nations are considering similar driving taxes, and a driving tax experiment was recently tried in Oregon in the United States. The chances of a tax comparable to the Dutch tax being levied in the U.S. are slim, however, as that would more than triple the $260 a year that the average U.S. driver now pays in state and federal gasoline taxes.

Thanks to Joel for the link. Also via: AP