Kilometre tax runs into more trouble

MPs yesterday evening refused to give the cabinet the green light to continue preparations for the introduction of a new tax on motoring based on the number of kilometres travelled.

The introduction of a kilometre tax from 2011 is a central part of the government’s efforts to ‘green’ the tax system and cut traffic jams.
But MPs from the three coalition parties refused to give the go ahead because citizens already face another new tax from the provincial governments. They said they will not support the kilometre tax unless proper compensation is worked out.
‘We are not going to let citizens pay twice,’ Christian Democrat MP Ger Koopmans said during the debate.
A large part of provincial government funding comes from the traditional road tax which is being replaced by the kilometre tax. To make up the €1bn shortfall in their income, the provinces want to bring in a new tax and are currently in talks with ministers on how to do this.
But according to the Volkskrant, a working party looking into the new provincial tax is not due to report until 2010.
Transport minister Camiel Eurlings told MPs that if the kilometre tax did not get the go ahead before the summer recess, which begins on Friday, the 2011 introduction date would not be achieved.

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