Tracking System To Be Placed In Every Dutch Vehicle

Vehicle Tracking System To Calculate Mileage For Tax

With the Netherlands being such a highly dense and populated area, traffic jams and congestion are common daily occurrences for citizens. Already having the unflattering reputation as Europe's most congested metropolitan area, traffic continues to become gradually worse as no viable solution for the problem has been achieved for decades. However, a new GPS tracking initiative that was recently passed by the Dutch cabinet may make the traffic problem a thing of the past.

What the Dutch government has decided would be the most responsible and fair way to deal with the traffic issue is to place a vehicle tracking system on every registered Dutch vehicle so the government can tax those drivers who frequent the roadways more than others. The legislation has already been passed, and by 2012 every vehicle driving on Dutch roadways will be required to have a GPS tracking device on board to calculate mileage driven. Motorists not having the tracking system equipped to their vehicle will be fined.

How Much Will The Tracking System Program Cost?

Dutch motorists will be required to purchase the GPS tracking devices out of their own pocket, and currently most real-time vehicle tracking devices sell for approximately $399.00. Lawmakers have yet to suggest that the cost of for a tracking system will be made tax-deductible, meaning, as it stands now, motorists will be forced to pay for the GPS trackers themselves.

The mileage tax itself will also be quite expensive as motorists will be required to pay approximately 6 cents per kilometer driven. The cost per kilometer driven will also increase every year up until it hits the price ceiling in 2018 at approximately 10 cents per kilometer. Lawmakers also intend on making motorists pay a higher per-kilometer tax who drive sports utility vehicles, or who drive during rush hour.

The revenue generated from the GPS tracking mileage tax will be used to restore, repair and build new infrastructure.

Vehicle Tracking Opinion

Should the United States implement a similar GPS tracking plan to tax mileage driven by motorists as a way to reduce traffic?

What are your thoughts on the government forcing you to purchase a tracking system for mileage calculation and taxation purposes?

Source: Time