Polluting cars face higher taxes

Ministers have reached agreement on scrapping the 40% sales tax on new cars (bpm) and replacing it with a special levy for highly-polluting vehicles, news agency ANP reports.

The levy should raise between 15% and 25% of the €3.5bn currently raised by the new car sales tax. The rest of the shortfall will come from the introduction of a new tax on the actual distance driven. That is to be introduced from 2012.
The car industry has said it will only back the introduction of a kilometre tax if the sales tax is abolished.
Transport minister Camiel Eurlings and tax minister Jan Kees de Jager will discuss the plan in more detail next week.

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