Road tax kilometer charge difficult to implement

A kilometer road tax on busy highways during rush hour is good for prosperity, but difficult to implement, according to the Central Planning Bureau.

The cabinet does not currently have any plans to introduce a kilometer road tax, but the topic comes up quite often, NOS reports. Eight years after the CPB's previous study on the effects kilometer road tax will have, the Bureau decided now was a good time for a new study. The CPB investigated three different options.

According to the findings of the CPB, a tax of 11 percent per kilometer only when the roads are busy is profitable. Traffic will reduce and motorists will be able to get to their destinations faster. On the other hand, taxing only busy sections of roads will be confusing for road users as they will not know which roads are being charged. There may also be increased costs due to privacy- and fraud issues.

Another option the CPB investigated is a simpler rush hour tax of 5 cents per kilometer on all main roads in the Randstad, parts of Noord Brabant and Gelderland. The benefits of this option does not outweigh the disadvantages and this variant is only beneficial in a high economic growth.

The last option the CPB investigated is a tax of 7 cents per kilometer for all kilometers driven. The disadvantages of this option outweighs the benefits. This option will lead to less traffic, more road safety and less emissions. But this is because people will be driving about 15 percent less. This is bad for the economy and will lead to an about 1 euro per liter increase on the price of gasoline.