Dutch drivers presently pay sales and ownership taxes that amount to more than a quarter of the value of their cars.
Starting in three years, both could be scrapped in favor of a green road tax that will charge them for the kilometers they travel.
Intially tax rate will be 3 euro cents a kilometer (7 cents) but will double in five years.
The tax is likely to be among the most effective climate-change measures in the world and perhaps one of the most controversal. It has yet to be approved by Parliament. If enacted, it would assign each vehicle in the Netherlands a tax rate based on its size, weight and emissions – in essence proving as decidedly anti-carbon policy as a tax on gasoline, which has been talked about briefly in the US. and advocated by ExxonMobile. Buses and motorcycles are exempt from the new fees.
According to a statement from the Dutch government, the tax will be levied beginning in 2012 and is aimed at cutting CO2 emissions by 10 percent. The fee is scheduled to double by 2017 to 6.1 euro cents a kilometer after starting at 3 euro cents (7 U.S. cents).
Tax collectors will keep track of miles covered by installing GPS devices in every car. Officials say the tax will not increase bills for consumers, but shift them away from sales and ownership fees. Research suggests drivers will cut down their mileage by 15 percent.
The tax clearly as several benefits. For one, it will lower the price of cars since sales taxes will be abolished. More importantly, it is likely to be an aggressive climate policy at a time when stronger measures are needed.
Posted by Mark Boslet 
