New car sales tax to be reduced

The tax on new cars (bpm) will probably be reduced to around 25% of current levels by 2016, cabinet sources tell Friday’s Telegraaf.

At the same time, the cabinet plans to phase in a new tax on motorists, based on the number of kilometres driven.
Sources tell the paper that ministers will review the effect of the switch to a kilometre tax on the economy in 2016.
The sales tax currently raises some €4bn for the treasury. The Telegraaf says finance minister Wouter Bos wants to keep the tax, fearing that a high charge on the distance actually driven – some eight cents per kilometre – would have a serious effect on driving habits and reduce income for the treasury as a result.
Earlier this month, three of the government’s main advisory bodies warned that a tax on actual driving would reduce the number of short car journeys and cut tax income from petrol levies.
If the results of the evaluation are positive, the sales tax – currently 42% of the catalogue value of a new car – will be phased out altogether.
A spokesman for the transport ministry declined to comment on the reports.

Thank you for donating to

We could not provide the Dutch News service, and keep it free of charge, without the generous support of our readers. Your donations allow us to report on issues you tell us matter, and provide you with a summary of the most important Dutch news each day.

Make a donation