Monday, November 23, 2009

International


11/16/2009
 

Netherlands Road Fees

New Pay-as-You-Go Tax for Dutch Drivers

By NRC Handelsblad Staff

Traffic jams are a constant problem in the Netherlands.
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dpa

Traffic jams are a constant problem in the Netherlands.

Rather than an annual road tax for their cars, drivers in the Netherlands will soon pay a few cents for every kilometer on the road, in a plan aimed at eliminating chronic traffic jams and cutting carbon emissions.

The GPS monitoring system could be a test case for other countries weighing options for easing crowded roads. Some cities like London have created congestion charges to control traffic in downtown areas, but only Singapore has a similar scheme for charging according to the amount of travel.

When the plan takes effect in 2012, new car prices will drop as much as 25 percent with the abolition of a purchase tax and the road tax, which now totals more than 600 euros per year for a mid-sized car. Instead, an average passenger car will pay €0.03 per kilometer, with higher charges levied during rush hour and for travelling on congested roads. Trucks, commercial vehicles and bigger cars emitting more carbon dioxide will be assessed at a higher rate, the transport ministry said.

The GPS devices installed in cars will track the time, hour and place each car moves and send the data to a billing agency.

Few Alternatives

The Netherlands -- and especially the coastal area encompassing the cities of Amsterdam, Rotterdam, The Hague and Utrecht -- has one of the most burdened road networks in Europe, with traffic jams likely at dozens of places virtually throughout the day. Hourly broadcasts report where the traffic is snarled, but often few alternatives exist to escape the highways.

The ministry said the new GPS monitoring system would discourage drivers from clogging the highways during peak hours, and in some cases, from driving at all. It estimated traffic would drop 15 percent and rush-hour congestion would be halved when drivers begin getting regular bills.

With less traffic and perhaps fewer stressed drivers, fatal accidents should fall 7 percent, and carbon emissions from road travel would be cut by 10 percent, the ministry said.

The tax will ratchet up every year until 2018 and could be adjusted if it fails to change traffic patterns.

Privacy Concerns

Opponents were concerned the system will be a heavy burden on business drivers and could cost the government more than 1 billion euros a year in tax income. But the government figured nearly six out of 10 drivers would benefit while tax revenue would remain the same. Public transportation, including taxis, will be exempt.

"The goal is a different manner of paying for mobility that is more fair. Not paying more, but paying differently, with a positive income effect for most households," Eurlings said.

The kilometer tax has been debated for 20 years, raising other concerns that it would intrude on privacy. The ministry said, however, the information collected by GPS would be "legally and technically protected," and the data would not be accessible to the government for other purposes. "The privacy of road users is protected," it said.

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FOUND IN ...

This article has been provided courtesy of NRC Handelsblad. NRC Handelsblad and its companion Web site NRC.nl are two of the most respected brands in Dutch journalism.

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GERMANY'S ROAD TAX DEBATE

The Dutch decision to change from a vehicle tax system to one which is based on the amount of kilometers driven has set off a debate in Berlin as to whether Germany should do the same. Cem Özdemir, head of the Green Party in Germany, told the daily Hamburger Abendblatt that "the Dutch model goes in the right direction." He went on to say "those who drive a lot and rely on a gas guzzler that emits lots of CO2 that hurt the climate -- they should pay more than those who drive a more efficient car."

But Chancellor Angela Merkel's governing coalition was quick to insist that such a model was not in Germany's future. A spokesperson for the Transportation Ministry said on Sunday that "a car toll, no matter what form it might take, is not an issue currently being discussed."

The Free Democrats, Merkel's junior coalition partners, also rejected the plan. Patrick Döring, the senior FDP member in the parliamentarian committee dealing with transportation issues, told the Hamburger Abendblatt that, due to the number of drivers and vehicles involved, the system was not practicable in Germany.


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