Dutch Plan Extra Tax for Gas-Guzzling Cars
Date: 04-Jun-07
Country: NETHERLANDS
Author: Gilbert Kreijger
Cars that exceed a threshold level of carbon dioxide emissions would be taxed by an extra 80 euros to 90 euros (US$108 to $121) for each gram above the level, the Dutch Finance Ministry said in a statement on Friday. It also plans to lower taxes for vehicles with relatively low emission rates.
The threshold is 240 grams of CO2 per kilometre for gasoline cars and 200 grams for diesel cars, the ministry said. The measures would apply to a car tax known as BPM, which is levied when a car is bought or registered in the Netherlands for the first time, a Finance Ministry spokesman said.
The extra levy would apply to most SUVs, such as BMW's X5, Chrysler's Jeep Grand Cherokee and Mitsubishi Motor Corp.'s Pajero, the spokesman said.
The rule would add an additional 1,600 to 1,800 euros in taxes for BMW's X5 3.0si standard edition and 3,520 to 3,960 euros for Mitsubishi Pajero's Invite SWB 3.2 litre DI-D diesel with manual gearbox, according to emission data on the manufacturers' Web sites.
A few hundred euros would be saved in taxes for low polluting cars, such as PSA Peugeot Citroen's Peugeot 107 and Citroen C1, and hybrid cars like Toyota Motor Corp.'s Prius and Honda Motor Co.'s Civic, the spokesman said.
Following a European drive to fight climate change, the new Dutch government, which took over in February, wants to achieve energy savings of 2 percent per year, boost the share of renewable energy to 20 percent and cut CO2 emissions by 30 percent by 2020.
Carbon dioxide traps heat in the atmosphere. Scientists say if emissions are not curbed sea levels will rise and droughts and floods may happen more frequently.
Britain raised vehicle road tax for the most polluting cars in March and Germany has announced plans to tax cars based on emissions rather than engine size.
In addition to the planned new tax changes, levies on polluting cars and incentives for the least polluting cars which are already part of the BPM would be raised, the Finance Ministry said.
For company-leased cars, the ministry proposes a tax reduction for employees who choose a car with a CO2 emission rate below 110 grams per kilometre and use the car for private purposes, the ministry said.
The moves are part of government plans that also include extra taxes on airline tickets and environmentally unfriendly fuels and energy sources which are currently being studied by the Finance Ministry, the spokesman said.
The car tax plan is expected to come into force by Jan. 1, 2008 if the Dutch parliament approves it, he said.