Last minute deal reached on kilometre tax

MPs on Thursday agreed to allow experiments with a kilometre tax on motoring after transport minister Camiel Eurlings assured them drivers will not be worse off.

Earlier this week, MPs refused to give the green light to the kilometre tax project because of fears that another new tax, this time from the provincial authorities, was on the table.
The kilometre tax will replace the current road tax, which is used to raise €1.3bn for the provinces. It is still not clear how that money will be replaced.
Eurlings can now carry out technology trials in areas where there is a lot of traffic congestion, ahead of the 2011 launch date. He has a budget of €270 for the experiments, the Telegraaf reports.

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