Netherlands to tax polluting cars

Published: Sunday 15 July 2007

The Netherlands recently announced its plans to cut co2 emissions by 30 per cent by 2020. To achieve the target, it has proposed that an additional tax be imposed on cars that exceed the permissible limit of co2 emissions.

The cars will be required to pay an additional tax of Euro 80-90 (us $107 to 121) for every gramme (g) of co2 emitted above the limit. The threshold for gasoline cars is fixed at 240 g of co2 per km, while that for diesel cars is at 200 g per km. The additional tax will be levied as part of the car registration tax. However, taxes in the case of cars with relatively low co2 emission rates will be lowered. The government says the move will help the owners of low-polluting and hybrid cars save money in taxes.

A statement released by the finance ministry notes the plan will badly hit the gas-guzzling sport utility vehicles. The government has also announced a tax relief to the employees who choose a car with a co2 emission rate below 110 g per km. The plan will come into force from January 2008.

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