andrewducker (
andrewducker) wrote2009-11-16 11:01 am
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I'd read Woofer.
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And about time too.
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Beginning in 2012 the law will abolish current road taxes and sales taxes for automobiles, cutting the cost of a new car by 25 percent, in favor of the pro-rated distance tax. Drivers will be charged 0.03 euros per kilometer (7 cents US per mile) in an attempt to reduce traffic jams fatal accidents and carbon emissions.
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If it can be done effectively without intrusive monitoring, I'm theoretically in favour; in the UK, we have a massive cost PA just to own a car, including road taxes and insurance--if we could switch that towards usage, then light use becomes more cost effective, as it is I'm paying about £80 per month just to own the thing, so might as well use it constantly, which is the wrong incentive.
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To the naive observer, it seems they should simply scrap vehicle tax and whack up fuel duty. While taxation per-mile achieves one of the goals, of getting people to cut out unnecessary journey, once a driver has decided that he *has* to nip down to the shops, what's to persuade him to take the Smart Car instead of the Hummer?
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Driving a kilometre in the city is already generally more expensive than driving a kilometre in rural areas, due to traffic, traffic controls etc. I'm sure this effect isn't enough to normalise the system such that removal of vehicle duty will sufficiently compensate those in rural areas for the extra fuel costs, though!
Additionally, a non-constant tax rate would have to be carefully crafted in order to avoid encouraging people to travel further to save money: say, driving all the way round the city rather than straight through. If you happened to be driving a Prius or an Insight that wouldn't burn too much more fuel in city traffic, then the long way round could cause more pollution but still work out cheaper.