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.
Thank you for donating to DutchNews.nl.
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