Vehicle Registration Tax Discount/Kilometer Charge (Netherlands)

Vehicle Registration Tax Discount/Kilometer Charge, Netherlands

Introduced

July 2006

Aims

To encourage lower emissions vehicles

Design

Dutch car registration tax - payable on purchasing a new car - will be strongly differentiated according to vehicles' environmental performance. The greenest hybrid cars will secure a €6,000 discount compared with standard rates now (which vary according to model).

Tax on the least green cars will be €540 higher than it was.

Cars are classified into seven categories based on their fuel consumption, CO₂ emissions and an efficiency indicator relative to other cars of a similar size. The maximum discounts for conventionally fuelled vehicles will be 41,000. Only hybrid cars will be eligible for the maximum €6,000 discount. (ENDS, 2006).

In 2009, a legislative proposal sent to the Dutch parliament outlined a possible scrappage of vehicle registration and circulation taxes in the Netherlands. They would be replaced by a kilometre charge from 2012.

Carbon dioxide and particulate matter emissions from road transport would be cut by more than 10% under the plans, the government says, while over half of car owners would pay less in taxes than they do currently.

The basic charge for cars would rise from €0.03 to €0.067 over the period 2012-18. Each car would be equipped with a GPS system to record when and where it is driven and how far within Holland. Revenues would go to a transport infrastructure fund. The rate can be adjusted if it fails to adjust driving habits. Trucks, commercial vechicles and bigger cars will be assessed at a higher rate. There would be an "alternative payment system" for foreign vehicles (ENDS, 2009).

This change essentially means Dutch motorists will start to pay for using their vehicle rather than owning it. The Dutch government expects the number of cars on the road to decrease by 15%

The revenue generated is not expected to exceed that of the previous tax – 59% of motorists are expected to pay less (www.foes.de, 2010).

References

ENDS, 2131, 5/7/06

ENDS, 2009. Dutch government finalises kilometer charge plan, ENDS Europe, Monday 16 November 2009

www.foes.de. Green Budget News 25. http://www.foes.de/pdf/GreenBudgetNews25.pdf

Written by admin

Vehicle Registration Tax Discount/Kilometer Charge, Netherlands

Introduced

July 2006

Aims

To encourage lower emissions vehicles

Design

Dutch car registration tax - payable on purchasing a new car - will be strongly differentiated according to vehicles' environmental performance. The greenest hybrid cars will secure a €6,000 discount compared with standard rates now (which vary according to model).

Tax on the least green cars will be €540 higher than it was.

Cars are classified into seven categories based on their fuel consumption, CO₂ emissions and an efficiency indicator relative to other cars of a similar size. The maximum discounts for conventionally fuelled vehicles will be 41,000. Only hybrid cars will be eligible for the maximum €6,000 discount. (ENDS, 2006).

In 2009, a legislative proposal sent to the Dutch parliament outlined a possible scrappage of vehicle registration and circulation taxes in the Netherlands. They would be replaced by a kilometre charge from 2012.

Carbon dioxide and particulate matter emissions from road transport would be cut by more than 10% under the plans, the government says, while over half of car owners would pay less in taxes than they do currently.

The basic charge for cars would rise from €0.03 to €0.067 over the period 2012-18. Each car would be equipped with a GPS system to record when and where it is driven and how far within Holland. Revenues would go to a transport infrastructure fund. The rate can be adjusted if it fails to adjust driving habits. Trucks, commercial vechicles and bigger cars will be assessed at a higher rate. There would be an "alternative payment system" for foreign vehicles (ENDS, 2009).

This change essentially means Dutch motorists will start to pay for using their vehicle rather than owning it. The Dutch government expects the number of cars on the road to decrease by 15%

The revenue generated is not expected to exceed that of the previous tax – 59% of motorists are expected to pay less (www.foes.de, 2010).

References

ENDS, 2131, 5/7/06

ENDS, 2009. Dutch government finalises kilometer charge plan, ENDS Europe, Monday 16 November 2009

www.foes.de. Green Budget News 25. http://www.foes.de/pdf/GreenBudgetNews25.pdf