Netherlands Green Road Tax - A European First

The Netherlands has announced its intention to usher in a new green road tax as a CO2 emissions reduction strategy.  This tax will take over from its standard annual road tax, and will see drivers in Holland charged on a per-kilometre basis.  In other words  - the further you drive, the more you pay. 

The aim of the new green road tax scheme is two-forked.  On the environmental side, the hope is that it will help achieve a ten per cent CO2 emissions reduction in the Netherlands, while it is also linked to a wish to lower levels of congestion around the country – which is a persistent problem.

Green Road Tax

In a press release issued in conjunction with the announcement, the Dutch Transport Ministry highlighted how the green road tax will be implemented.  GPS technology, it said, will be integrated into all the country’s private motor vehicles.  This technology, the ministry explained, will calculate “how many kilometres are driven, and when and where”.  The GPS devices will then stream data directly to an agency which will subsequently invoice the vehicles’ owners on a structured basis.  “Traffic jams will be halved and it helps the environment”, the ministry added.

Environmental Road Tax

The introduction of Holland’s new environmental road tax scheme is due to take place in three years’ time.  At this point, taxes imposed at the point of vehicle sale will be scrapped. 

It is understood that the initial charge to be imposed will be approximately three euro cents/km, but this will go up on a yearly basis between 2012 and 2018.  This will be applicable to standard family saloon-type cars:  higher-emitting cars and lorries will be charged at higher rates.  Exemptions, meanwhile, will be made for disabled vehicles, motorbikes, taxis, classic cars and buses, and foreign cars will be dealt with through a separate pricing scheme.

The Netherlands represents the first European nation to announce the introduction of a green road tax like this.  Outside Europe, though, other countries have already done so – Singapore being one.

News of the scheme was received well by the German Green Party, which – according to elements of the German media – is now pressing on the German government to implement a comparable scheme.

See also:

Maldives to Impose Green Tourist Tax