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    Car taxes going forward

    State Secretary Vijlbrief of Finance had promised the House of Representatives to bring some order into the tangle of car tax options. So now there is the ‘Car Tax Choice Guide ’. The authors of the report recognize ‘challenges’ in three areas:

    • Basis and simplification of the system: revenues from excise duties are under pressure from the growing number of plug-in cars;
    • Reduction of CO2 emissions and nitrogen problems: sales of electric cars are increasing, but many cars still have internal combustion engines. Should their taxation be raised?
    • Accessibility and congestion: traffic is increasing. How can taxation help to prevent the country from getting stuck in traffic jams?

    All three items suggest the ‘pay-as-you-go’ solution. However, it is very complicated to introduce this system and not really an option until after 2030. In the meantime, the excise duty on gasoline could be raised, or the tax-free allowance for commuting could be scaled down.

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