Pay-as-you-drive system divides Dutch cabinet

13th November 2009, Comments 0 comments

Finance Minister Wouter Bos says the Inland Revenue’s income may suffer when people drive less and wants Transport Minister Camiel Eurlings to cut spending on roads instead.

The Hague – Finance Minister Wouter Bos has fallen out with his Transport Minister Camiel Eurlings over the introduction of road pricing in the Netherlands in 2012. 

Under the proposed pay-as-you-drive system, motorists would no longer pay road tax or car purchase tax. Instead they would just pay for the distance they have driven. A satellite system would register where and when vehicles are driven.

The ministers disagree about the budgetary consequences of the new scheme. Bos said road pricing as proposed was financially irresponsible, pointing out that the Inland Revenue's income may suffer if people decide to drive less under the new regime. 

Bos wants the traffic minister to cut spending on roads, a measure which Eurlings is unwilling to consider. 

Minister Eurlings also ruled out higher road pricing rates, so it remained unclear how much motorists will be paying per kilometre from 2012.

Radio Netherlands / Expatica

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