From 2030, car owners will pay a vehicle tax based on how much a car drives. Previous change plans were aimed at eliminating traffic congestion, and the amount of the tax was to depend on the time of day when the car is used and the roads on which it travels. Now the focus will be shifted to environmental protection. “The government only wants to know how many kilometers were driven, not where and at what time. We hope that people will use their cars more consciously, which will benefit the environment,” said Minister of Infrastructure and Water Resources Mark Harbers.
The purpose of levying a tax on motor vehicles (formerly road tax) depending on the real mileage is enshrined in a coalition agreement between the parties VVD, D66, CDA and ChristenUnie when forming a parliamentary majority. Now the owner of the car pays tax on the fact of ownership, but the ruling parties believe that this approach needs to be changed.
In addition to the vehicle tax, the owner also bears additional costs. When buying a new car, the corresponding tax is paid, and the excise tax that goes to the budget is included in the cost of motor fuel. Previously, the idea was that it was through this excise that the use of vehicles should be regulated, and, accordingly, environmental pollution. However, the massive transition to electric vehicles has reduced budget revenues. If at the moment all transport was electric, the government would receive less than 8 billion euros from excise taxes per year. The current vehicle tax brings in another 4 billion euros a year.
What is planned?
The Cabinet of Ministers has determined that switching to the payment of tax on vehicles depending on its mileage is a top priority. The government is already negotiating with transport companies and municipalities (vehicle tax goes to municipal budgets). It is planned that the preparatory work on changing the method of calculating the tax will be completed by the end of January 2028. Further, we are waiting for changes in legislative and regulatory acts, and the transition to a new tax calculation system should occur in 2030.
The tax rate that determines how much a car owner will pay per kilometer has not yet been set. In addition, there are still discussions about whether the owners of electric cars and cars with reduced fuel consumption should pay less or be exempt from paying this tax. In any case, it is already clear that from 2030 those who drive more will pay more.
Find out, which cars are exempt from motor vehicle tax until 2025.
Publication Date: 08.07.2022
