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Dutch to use GPS to calculate road tax

Dutch to use GPS to calculate road tax

Alex Kaufmann May 7th, 2008 Alex Kaufmann By Alex Kaufmann Author May 7th, 2008
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December 31st, 1969 Road taxes have come under increasing scrutiny these days, what with congestion charges, speeding fines and average-speed cameras all annoying motorists to no end. It's especially bad for people who drive little but must still pay the same taxes as those who drive long distances every day - they are getting taxed at a higher rate for their use. The Dutch may have found a way to solve that particular injustice, however. The Dutch government is using GPS to track cars and charge them money based on the type of vehicle they own, how much they use it, what time they use it and whereabouts they are driving. All this information is sent to a government computer via a car transmitter and the cell-phone network and a fee is calculated, although the Dutch government has been quick to point out that no information about driver whereabouts is ever stored. The system works by taking substantive factors into account in road taxation, including congestion periods and environmental impacts of cars. For example, if you are riding a low-polluting motorbike around the country at 3am you will be charged significantly less than an SUV driving through the city center in peak hour traffic. However, because of the difficulty in installing the needed electronics on a motorbike, they may be exempted from the per-kilometer tax scheme and instead keep the older, purchase and sales-based tax scheme. Currently, the rate of charges is unknown but should be light enough to not impact on the majority of the population too severely. The system will be phased in starting in 2011, with commercial trucks being the first to switch to the new system and eventually all vehicles will be subject to the per-kilometer taxation by 2016. Between now and 2011, the Dutch government will put the technology and infrastructure for the system through a number of trials to ensure it is ready when the system goes live. The method is also being scrutinized for possible use in the UK, which is also examining average-speed cameras and lower speed limits.
Dutch to use GPS to calculate road tax

Dutch to use GPS to calculate road tax

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Road taxes have come under increasing scrutiny these days, what with congestion charges, speeding fines and average-speed cameras all annoying motorists to no end. It's especially bad for people who drive little but must still pay the same taxes as those who drive long distances every day - they are getting taxed at a higher rate for their use. The Dutch may have found a way to solve that particular injustice, however.

The Dutch government is using GPS to track cars and charge them money based on the type of vehicle they own, how much they use it, what time they use it and whereabouts they are driving. All this information is sent to a government computer via a car transmitter and the cell-phone network and a fee is calculated, although the Dutch government has been quick to point out that no information about driver whereabouts is ever stored.

The system works by taking substantive factors into account in road taxation, including congestion periods and environmental impacts of cars. For example, if you are riding a low-polluting motorbike around the country at 3am you will be charged significantly less than an SUV driving through the city center in peak hour traffic.

However, because of the difficulty in installing the needed electronics on a motorbike, they may be exempted from the per-kilometer tax scheme and instead keep the older, purchase and sales-based tax scheme.

Currently, the rate of charges is unknown but should be light enough to not impact on the majority of the population too severely. The system will be phased in starting in 2011, with commercial trucks being the first to switch to the new system and eventually all vehicles will be subject to the per-kilometer taxation by 2016.

Between now and 2011, the Dutch government will put the technology and infrastructure for the system through a number of trials to ensure it is ready when the system goes live.

The method is also being scrutinized for possible use in the UK, which is also examining average-speed cameras and lower speed limits.

Tags: Gadgets, Trends

Posted in: News


Comments (8 total)

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  1. By HECTOR #1, Posted: 5/7/2008

    I would laugh and say *I'm glad I don't live in Holland or the UK* but like the stupid daytime running lights it's only time before these measures are implemented in the US. I for one harbor no illusions about government's endless hunger for our money.

    Honesly boys, I'm scared.

  2. By Roy #2, Posted: 5/7/2008

    This is a very clever way of doing something pretty stupid. Why not just tax the gasoline? It's a much simpler way of making sure that people who use heavier (less economical) vehicles, or those who drive more, pay more. Oh, right, I forgot, they already do that, to the tune of about 300%.
    I will be the first to stand up and say that people should be charged for what they use in terms of roads, fuel, pollution clean-up, etc - something that is NOT yet happening in the US - but at some point it has to stop. The motorist is not a golden goose. No wonder so many motorists in the US are looking at the EU with some nervousness.
    This particular scheme is nothing more than an over-complicated way of overcharging overtaxed motorists. Thank goodness they don't have easy access to semi-automatic handguns or the place might just erupt.

  3. By Roy #3, Posted: 5/7/2008

    While I remember, the average number of people per square mile in England is over 1000. In London, it's over 10,000, and growing rapidly. There's not going to be any need to lower the speed limits - there will be so much traffic all the time that traffic won't be able to move quickly anyway. No wonder they're buying Nissan Skyline GT-Rs like there's no tomorrow. There might not be...

  4. By chris #4, Posted: 5/8/2008

    oh hector, going on about daytime runners. hey i dont agree with using GPS to tax people; you should just tax the fuel more. and if you dont agree with that then what I say is... it costs a lot of money to keep up those roads that you drive on. they're just making sure they tax the people who use it the most. its only fair. but roy brings up a good point... why not just tax the gasoline. more.

    but seriously hector, whats so bad about daytime runners? like i've said before, I've driven in detroit before and nearly drove into people because they're too stupid or lazy to put on their lights during the night. at least in canada, they'd have the manditory daytime lights on and i'd get some indication that they're on the road in front of me doing 30mph on the EFFING FREEWAY. so really.. is it the 3 cents every time you fill up that is going towards always having the lights on that bugs you? or is it the fact that those communist pigs in the government are taking away your freedom to drive a car without lights on? i really dont get it. please explain. i really want to know what the american problem is with daytime runners.

    and roy,... if the government can provide some budgetary evidence that these increases in gas tax are needed, or (i'm laughing while writing this) a rediculously complex GPS system to bill you based on the KM travelled, then fine. like you say, taxes shouldnt be flat fees. if you use something more than john Q Public, why should you both pay the same? and if the government needs more money for roads, gas tax is going up. simple as that.

    the country is forcing you to pay taxes but they arent forcing you to stay in that country. government is like any other business. you always have the FREEDOM to shop some where else.

  5. By MyWheelsOnWalls.com #5, Posted: 5/8/2008

    I went to Holland once and now I'll never go back. Makes German occupation seem like the good times since they did'nt have satelites!!!!

  6. By Gus #6, Posted: 5/8/2008

    Tax, tax, tax.

    Seems like that's their favorite thing to do...

  7. By RB #7, Posted: 5/8/2008

    When I was last in the US I thought daylight runners was a good idea in the country with the heat haze on the roads etc - certainly helped you see oncomings better

    We dont have daylight runners in the UK at the moment - but think it would be a good idea - might make it sunnier!

    Ive always thought putting the tax up on petrol (dont forget im coming from being in the UK and we already live with $10 a gallon petrol!) would be a better way - it would also get rid of all the tax dodgers - and a few thousand civil servants who administer the current set up!

    just then got to work out how to get rid of all the insurance dodgers (have heard than 1 in 5 cars is not insured!)

  8. By TS #8, Posted: 5/9/2008

    lets adjust property tax the same way then. I don't have kids in school or use police/fire department services either. I want my property tax to reflect exactly the services i use. Why should i pay more than my neighbor because my house is bigger?

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