The Dutch Cabinet approved legislation Friday that would tax drivers per kilometer driven.  Parliament still needs to pass it before it can become law.  Ownership and sales taxes on autos would be abolished.  The cost per kilometer will vary depending on the size of the car and the engine.  By 2018, the average cost will be 6.7 Euro-cents per kilometer.  Gas tax will still be collected.

Mileage will be calculated by a GPS system made mandatory in each car, initially paid for by the government.  The Transport Ministry says this move could cut carbon dioxide emissions by 10 percent, and reduce congestion.

This system is similar to something being tested in Oregon with a small group of volunteers.  According to ODOT’s report, the system is largely successful, despite privacy concerns.

From Autopia, The Truth About Cars.