Holland raises purchase tax on high carbon cars; hikes rebate for low carbon
Mon 04 February 2008
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The Dutch Government has steepened the differences in its car purchase tax regime to penalise high carbon cars relative to their low carbon counterparts. The increased taxes on the purchase of 'gas guzzlers' are being used to raise rebates for low carbon models. Other European countries and US states are also reported to be considering the introduction of similar 'feebate' schemes.
The bonus for the most fuel-efficient cars (label A) has risen from € 1,000 to € 1,400. The penalty for the least efficient cars (label G) has risen from € 540 to € 1,600. The difference between the maximum bonus and the maximum penalty thus increases from € 1,540 to € 3,000.
A CO2 surcharge is being introduced for cars with the highest fuel consumption. The surcharge amounts to € 110 per gram of CO2 emission above a specific limit. For petrol cars, the limit is 240 grams per kilometre and 200 grams per kilometre for diesel cars. Home delivery vans are exempt from the measure.
The Dutch Government aims 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
A Mercedes-Benz spokesman (quoted by Reuters) said: "It is not clear if a customer who is willing to pay 160,000 euros for such a car will be affected by the fact that he has to pay 10,000 more."
Some countries in Europe already have emissions-based purchase taxes for cars and others are reported to be considering introducing them, some in the form of 'feebates' similar to the Dutch model. California and several other US States are considering similar schemes. A bill called the California Clean Car Discount Act, proposed the levying of purchase taxes of up to $2,500 on new high carbon vehicles with the revenues raised used to fund rebates for low carbon models. Similar ideas have been proposed - but not yet passed - in New York, Vermont, Massachusetts and Connecticut.
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