Kilometre tax will be way over budget

The cost of collecting a new tax based on the actual number of kilometres people drive is more than double the government’s earlier pledge, a parliamentary research group said on Wednesday.


The annual cost of the so-called kilometre tax, which is due to come into effect for all vehicles from 2012, will not be 5% of revenues, but 12.2% if the cost of tracking devices is included, the researchers said.
Start up costs will be almost €3bn, the researchers said.
Liberal and Socialist MPs have called on transport minister Camiel Eurlings to explain the looming budget overspend.
‘You can do better things with the money,’ Socialist MP Emile Roemer told NOS tv.

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