Drivers to pay tax on road time – not on car

Plans are in place to bring the “polluter pays” principle into the home garage. Rather than an annual road tax for cars, drivers in the Netherlands could soon be paying for every mile they drive on the road in a plan aimed at breaking chronic traffic jams and slashing carbon emissions.The plan will take effect in 2012 and will see new car prices drop by as much as 25 per cent with the abolition of a purchase and road tax.Instead, the average passenger car will pay 0.03euros per kilometre with higher charges during rush hour for travelling on congested roads. Vehicles that emit higher levels of CO2, such as trucks and commercial vehicles, will be assessed at a higher rate.GPS devices will be installed in cars to track the time, hour and place each car moves and send the data to a billing agency.Currently, the Netherlands has one of the most burdened road networks in Europe with traffic jams throughout the day. To make matters worse, there are few alternatives if traffic is snarled in mainstream areas. It is hoped that the GPS monitoring system will discourage drivers from clogging the highways during peak hours and in some cases may even stop some motorists from driving altogether.The Dutch government suggested that a GPS monitoring system could be a test case for other countries weighing up options for easing crowded roads. Singapore already has a similar scheme based on charging for the amount of travel.

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